PwC Netherlands uncovers audit fraud

Audit fraud occurred at PwC in the Netherlands, which the auditing and consulting company reported in its annual report for 2023 and 2024. Fraud with tests had previously been uncovered at industry colleagues Deloitte and KPMG, among others.

The exam fraud involved accountants passing on answers to mandatory tests, which is not allowed. “We know that this behavior contradicts the integrity and trust that must form the foundation of our business, and we are committed to addressing this issue thoroughly,” PwC wrote in the annual report.

According to PwC, the extent of the fraud cannot yet be determined as the investigation is still ongoing. The Dutch Financial Markets Authority (AFM) has asked all major accounting firms to carry out such an investigation. The study at PwC, which covers the period July 2017 to October 2023, is expected to be completed in the next financial year. This fiscal year runs until the end of June 2025.

PwC has taken action against audit fraud. For example, the accounting firm created a code of conduct and converted some e-learning courses into physical group meetings.

In addition, PwC calls employees accountable for committing audit fraud. This happens, for example, through “corrective” conversations and written warnings. The measures also include financial sanctions, the loss of a job or leaving the company.

Initial research into audit fraud at KPMG found that more than a hundred employees shared answers to mandatory tests each year. For this reason, director Marc Hogeboom and supervisory board chairman Roger van Boxtel resigned last year. In addition, KPMG had to fire several employees involved in fraud and the company imposed sanctions on additional employees. At Deloitte, board member Rob Bergsman left the company last year amid an internal investigation into fraud.