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KPMG partner fined over using AI to pass AI test

Financial Times
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A KPMG Australia partner was fined A$10,000 (US$7,000) in February 2026 for using AI tools to cheat on an internal AI training exam, marking the latest ethical breach in professional services. The unnamed partner uploaded training materials into an AI platform to generate answers, forcing a retest. Over 24 KPMG staff were caught misusing AI for exams this financial year, highlighting systemic compliance gaps. CEO Andrew Yates admitted the firm struggles to regulate AI use due to its rapid societal adoption, emphasizing stricter policies under a self-reporting system. The Association of Chartered Certified Accountants previously abandoned remote tests, citing AI cheating tools outpacing safeguards. All Big Four firms face recurring cheating scandals globally. Australian regulators declined further action, deferring to professional trade bodies. A Senate inquiry criticized the "toothless" oversight system, exposing weak governance in audit firm accountability.
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The KPMG incident is the latest example of a professional services company struggling with staff using AI to pass exams © ReutersKPMG partner fined over using AI to pass AI test on x (opens in a new window)KPMG partner fined over using AI to pass AI test on facebook (opens in a new window)KPMG partner fined over using AI to pass AI test on linkedin (opens in a new window)KPMG partner fined over using AI to pass AI test on whatsapp (opens in a new window) Save KPMG partner fined over using AI to pass AI test on x (opens in a new window)KPMG partner fined over using AI to pass AI test on facebook (opens in a new window)KPMG partner fined over using AI to pass AI test on linkedin (opens in a new window)KPMG partner fined over using AI to pass AI test on whatsapp (opens in a new window) Save Nic Fildes in SydneyPublishedFebruary 16 2026Jump to comments sectionPrint this pageStay informed with free updatesSimply sign up to the Artificial intelligence myFT Digest -- delivered directly to your inbox.A partner at KPMG Australia has been fined A$10,000 (US$7,000) after using AI tools to cheat on an internal training course about using AI.The unnamed partner was forced to redo the test after uploading training materials into an AI platform to help answer questions on the use of the fast-evolving technology. More than two dozen staff have been caught over this financial year using AI tools for internal exams, according to KPMG.The incident is the latest example of a professional services company struggling with staff using AI to cheat on exams or when producing work for clients. “Like most organisations, we have been grappling with the role and use of AI as it relates to internal training and testing,” said Andrew Yates, chief executive of KPMG Australia. “It’s a very hard thing to get on top of given how quickly society has embraced it.” He added: “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 world’s largest accounting body, the Association of Chartered Certified Accountants, scrapped remote tests late last year, saying its safeguards could not keep up with the “sophistication” of cheating systems. All of the Big Four accounting firms have been hit with fines over cheating scandals across multiple countries in recent years.KPMG has adopted measures to identify the use of AI by its staff and will record how many of its workers have misused the technology when it publishes annual results, it said.

The Australian Financial Review first reported that a KPMG partner had been fined over cheating on the AI test. The issue was highlighted last week during a Senate inquiry into the governance of the industry when Barbara Pocock, an Australian Greens senator, asked about a “misdemeanour” at KPMG.Pocock said that it was “extremely disappointing” that further action had not been possible. “We’ve got a toothless system where con artists . . . get away with so much,” she said.The Australian Securities and Investments Commission, the corporate regulator, said it had confirmed the incident with KPMG but would not take further action until the accountants’ professional trade body started disciplinary proceedings against the partner.Asic said audit firms are not obliged to report such misconduct as the onus is on individual partners to self-report to professional trade bodies. Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article Accounting & Consulting services Add to myFT Artificial intelligence Add to myFT Technology Add to myFT KPMG LLP Add to myFT Australia Add to myFT CommentsA partner at KPMG Australia has been fined A$10,000 (US$7,000) after using AI tools to cheat on an internal training course about using AI.The unnamed partner was forced to redo the test after uploading training materials into an AI platform to help answer questions on the use of the fast-evolving technology. More than two dozen staff have been caught over this financial year using AI tools for internal exams, according to KPMG.The incident is the latest example of a professional services company struggling with staff using AI to cheat on exams or when producing work for clients. “Like most organisations, we have been grappling with the role and use of AI as it relates to internal training and testing,” said Andrew Yates, chief executive of KPMG Australia. “It’s a very hard thing to get on top of given how quickly society has embraced it.” He added: “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 world’s largest accounting body, the Association of Chartered Certified Accountants, scrapped remote tests late last year, saying its safeguards could not keep up with the “sophistication” of cheating systems. All of the Big Four accounting firms have been hit with fines over cheating scandals across multiple countries in recent years.KPMG has adopted measures to identify the use of AI by its staff and will record how many of its workers have misused the technology when it publishes annual results, it said.

The Australian Financial Review first reported that a KPMG partner had been fined over cheating on the AI test. The issue was highlighted last week during a Senate inquiry into the governance of the industry when Barbara Pocock, an Australian Greens senator, asked about a “misdemeanour” at KPMG.Pocock said that it was “extremely disappointing” that further action had not been possible. “We’ve got a toothless system where con artists . . . get away with so much,” she said.The Australian Securities and Investments Commission, the corporate regulator, said it had confirmed the incident with KPMG but would not take further action until the accountants’ professional trade body started disciplinary proceedings against the partner.Asic said audit firms are not obliged to report such misconduct as the onus is on individual partners to self-report to professional trade bodies.

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