A KPMG Australia partner was slapped with a hefty AUD10,000 (Rs 6.4 lakh) fine after allegedly using AI tools to cheat on an internal AI training program.
The Financial Times reported that the KPMG partner, whose name has not been disclosed, allegedly relied on AI by uploading the course content to complete the internal AI training and had to retake the test.
According to the Financial Times, KMPG confirmed more than 24 employees were caught using AI tools to complete internal exams this financial year.
These cases have raised concerns about AI-fuelled cheating in top accountancy firms. The recent incident highlights the challenges companies face with employees using AI for internal tests or client work.
According to the Australian Finance Review, KPMG identified the cheating with the help of its proprietary AI detection system.
Andrew Yates, chief executive officer of KPMG Australia, told the Financial Times, “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,” he added.
Yates said that the company plans to strengthen its approach in certain areas of its operations.
“Given the everyday use of these tools, some people breach our policy. We take it seriously when they do. We are also looking at ways to strengthen our approach in the current self-reporting regime.”
The issue gained attention last week during a Senate inquiry into industry governance, when Australian Greens Senator Barbara Peacock pointed out a “misdemeanor” in KPMG.
Peacock called it extremely disappointing that additional measures could not be pursued.
“We’ve got a toothless system where con artists . . . get away with so much,” she said.
The Australian Securities and Investments Commission confirmed the incident with KPMG. However, it would take no action until the accountants’ professional body began proceedings against the partner.
In recent years, the Big Four accountancy firms have faced multiple incidents of cheating.
In 2021, KPMG Australia was fined AUD 615,000 over “widespread” misconduct after authorities caught more than 1,000 partners had shared answers during skill and integrity tests.
In recent years, Deloitte, PwC, EY, and KPMG have been penalised in multiple countries over cheating incidents.
As AI grows in influence, new opportunities for cheating have emerged.
The Association of Chartered Certified Accountants, the world's largest accounting organisation, cancelled online tests last year and now requires students to take exams in person to prevent AI-assisted cheating.
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