A partner at the global accounting giant KPMG has been slapped with a substantial $10,000 fine, equivalent to approximately £7,200, for employing artificial intelligence to dishonestly complete an internal training course designed to assess knowledge of the very technology they misused.
AI-Assisted Exam Violation
KPMG Australia has mandated that an unnamed audit partner retake a crucial test after discovering they uploaded official training materials to an external AI platform. This action was taken to illicitly generate answers for AI-related examination questions, constituting a clear breach of the firm's established policies.
The training program explicitly advised staff to download a reference manual for personal study. However, this partner circumvented the rules by inputting the reference document into an AI tool to directly answer an exam query, undermining the integrity of the assessment process.
Firm Leadership Responds
Andrew Yates, the chief executive of KPMG Australia, addressed the incident in a statement to the Australian Financial Review. "Given the everyday use of these tools, some people breach our policy. We take it seriously when they do," Yates stated. "We are also looking at ways to strengthen our approach in the current self-reporting regime."
Yates further elaborated on the broader challenge, noting, "Like most organisations, we have been grappling with the role and use of AI as it relates to internal training and testing. It's a very hard thing to get on top of, given how quickly society has embraced it."
Historical Context of Exam Misconduct
This latest incident occurs against a backdrop of persistent examination integrity issues within the professional services sector. KPMG itself has recently enhanced its detection processes for AI cheating, a move prompted by widespread cheating on internal tests identified between 2016 and 2020.
The problem is not confined to Australia. In June of the previous year, the United States regulator imposed fines totaling $8.5 million, roughly £6.2 million, against the Dutch branches of Big Four rivals Deloitte, PwC, and EY. These penalties were levied following investigations that uncovered "widespread exam misconduct".
Furthermore, in 2022, the US watchdog fined KPMG UK $7.7 million, approximately £6.3 million, and sanctioned four of its auditors. These sanctions were part of a series of penalties for various offences, including the firm's failure to adequately address a significant cheating scandal within its UK operations.
Broader AI Challenges for Big Four
The difficulties with artificial intelligence extend beyond cheating scandals. Deloitte Australia, another major competitor, encountered its own AI-related troubles. The firm was compelled to issue a partial refund to the Australian federal government after delivering a report containing several errors that were directly attributed to the use of AI.
A spokesperson for the relevant government department commented on the Deloitte incident at the time, stating, "Deloitte conducted the independent assurance review and has confirmed some footnotes and references were incorrect." This episode underscores the complex reliability and ethical challenges these professional services firms face as they integrate AI into their core operations and client deliverables.
The collective experiences of KPMG and Deloitte highlight a critical period of adjustment for the Big Four. As they navigate the rapid adoption of artificial intelligence, firms are being forced to simultaneously harness its potential while rigorously policing its misuse, both in internal governance and external client work, to maintain professional standards and public trust.
