Chartered Accountants ANZ has belatedly ruled that only 12 of the 422 members from big four consulting firm KPMG who took part in systemic exam cheating will be put through the professional body’s individual disciplinary process.
The body’s disciplinary committee ruled that the “activities undertaken” by 410 KPMG CA ANZ members involved in the cheating “did not meet the threshold for further action under the Code of Ethics and CA ANZ by-laws”, and the sanctions and remedial actions already applied by KPMG Australia were “sufficient”.
The wrongdoing, which involved KPMG partners and staff cheating on courses that covered independence, audit and accounting rules, continued for at least five years until early 2020 and involved 18 partners and more than 1100 staff at the firm.
The US audit watchdog, the Public Company Accounting Oversight Board (PCAOB), issued a detailed report last September outlining the extent of the cheating, and fined the firm $US450,000 ($608,600) over the behaviour.
Chartered Accountants may only discipline 12 of 422 KPMG cheaters [Australian Financial Review]