The Dutch arms of Deloitte, PwC and EY have been fined a combined $8.5mn after US regulators uncovered widespread exam cheating involving “hundreds” of staff, including senior leaders, between 2018 and 2022.
Three of the Big Four accounting firms have been fined a combined $8.5mn by the US Public Company Accounting Oversight Board (PCAOB) after hundreds of employees, including senior leaders, were found to have shared answers on internal training exams in the Netherlands.
The Dutch arms of Deloitte, PwC and EY were penalised for widespread cheating on mandatory training and ethics assessments that spanned at least four years, from 2018 to 2022.
The PCAOB said the conduct involved staff at multiple levels — from junior employees to executive board members.
The sanctions follow a $25mn fine handed down to KPMG Netherlands in 2023 for similar misconduct.
That case also involved senior figures, including the firm’s head of assurance, and attracted criticism for misleading regulators during the investigation.
At Deloitte Netherlands, the firm’s chief quality officer resigned after it was discovered he had received answers to a mandatory test shortly before sitting it.
PwC Netherlands saw a partner step down from a senior leadership position after it emerged they had taken a test alongside a colleague, contravening exam protocols.
EY Netherlands was found to have engaged in similarly improper conduct, although the firm has not publicly confirmed which individuals were involved.
“The PCAOB will not allow impaired ethics to threaten the integrity of our capital markets,” said PCAOB chair Erica Williams.
The fines were distributed as follows: Deloitte and PwC were each ordered to pay $3mn, while EY received a $2.5mn penalty.
All three firms have since introduced stricter compliance policies and cooperated with the investigation, which the PCAOB acknowledged in its findings.
Local oversight will now increase. The Dutch audit regulator is expected to impose a new supervisory programme, which will include ongoing compliance monitoring and initiatives to address underlying cultural issues within the firms.
In their responses, the firms acknowledged the seriousness of the findings.
EY Netherlands said it had taken “extensive actions to reinforce our culture of compliance, ethics and integrity.” Deloitte stated that it had imposed “appropriate disciplinary measures” and would continue working with Dutch authorities to implement changes.
PwC Netherlands’ supervisory board chair Chris Buijink commented: “This undermines public trust in the organisation. We must learn from this.”
