KPMG Netherlands has been fined $38 million by the US accounting watchdog for cheating on its accounting tests.
👉 Background: KPMG is one of the Big Four accounting organisations, with its global corporate headquarters in Netherlands.
👉 What happened: Now, KPMG Netherlands has been fined $38 million by the US accounting watchdog because 1100 staff have been accused of cheating on its accounting tests.
👉 What else: This is the largest fine the US regulator has ever hit an audit firm with. And it comes as regulators are getting tighter with regulation after a series of scandals.
💡Trust in large accounting bodies has been slowly deteriorating after major scandals - so something has gotta change.
💡Regulators have become far stricter with penalties on the accounting firms to deter bad actors. For example, in Australia, the Federal government upped fines from $7.8 million to $780 million on tax advisor misconduct.
💡In addition. Chartered Accountants Australia New Zealand, the accounting body, will begin making its members make an annual pledge of integrity. This is all part of their effort to build back the trust in the accounting profession.
Sign up for Flux and join 100,000 members of the Flux family
