The Dutch Authority for the Financial Markets (AFM) announced that Deloitte, PwC and EY are now subject to heightened AFM supervision after the Public Company Accounting Oversight Board (PCAOB) fined the firms for their handling of exam fraud, imposing penalties of USD 3 million on Deloitte and PwC and USD 2.5 million on EY. Under the intensified supervisory regime, the firms are responsible for conducting an in-depth investigation into root causes and taking corrective measures. The PCAOB found that for at least five years hundreds of professionals, from junior staff to partner level, were involved in cheating on exams, including sharing answers, receiving answers without reporting it, and completing tests together, including exams that are partly required to maintain knowledge and skills for statutory auditor certification. The AFM characterised the exam fraud as a symptom of deeper issues such as time pressure, commercial incentives, inadequate steering and poor role-modelling, and noted that the PCAOB took into account the firms’ cooperation with the investigation, measures already taken and their placement under heightened AFM supervision when setting the fines; the sanctions conclude the PCAOB’s Big Four exam-fraud investigation after an earlier penalty for KPMG.
Dutch Authority for the Financial Markets 2025-06-25
Dutch Authority for the Financial Markets puts Deloitte, PwC and EY under heightened supervision following PCAOB exam fraud fines
The Dutch Authority for the Financial Markets (AFM) has placed Deloitte, PwC, and EY under heightened supervision following fines by the Public Company Accounting Oversight Board (PCAOB) for exam fraud, with penalties of USD 3 million for Deloitte and PwC, and USD 2.5 million for EY. The firms must investigate root causes and implement corrective measures. The PCAOB's findings revealed widespread cheating over five years, involving professionals at all levels, and highlighted issues like time pressure and inadequate governance.