The Dutch Authority for the Financial Markets has imposed a EUR 250,000 fine on accounting firm KC Audit & Assurance Services B.V. for performing statutory audits without holding the required AFM licence and creating the impression externally that it was permitted to do so. KC Audit submitted 32 statutory audit engagements to the AFM; the supervisor reviewed nine and found in each case that the firm wrongly accepted and carried out the statutory audit. The AFM treated the licensing requirement as a core element of audit regulation, set a higher penalty because KC Audit presented itself as authorised through a cooperation with a licensed firm, and reduced the total amount from a EUR 2 million base fine to EUR 250,000 due to the firm’s limited size and financial capacity. KC Audit filed an objection against the AFM decision on 1 May 2025.
Dutch Authority for the Financial Markets 2025-07-31
Dutch Authority for the Financial Markets fines KC Audit EUR 250,000 for carrying out statutory audits without a licence
The Dutch Authority for the Financial Markets fined KC Audit & Assurance Services B.V. EUR 250,000 for conducting statutory audits without the required AFM licence. The firm submitted 32 audit engagements, with nine reviewed and found non-compliant. The penalty was reduced from EUR 2 million due to KC Audit’s limited size and financial capacity, despite objections filed by the firm.