Dutch Watchdog Fines Forvis Mazars Over Exam Fraud Scandal

Key Takeaways

• Penalty Issued: The AFM fined Forvis Mazars €446,000 for failing to prevent or detect exam fraud among nearly 100 staff and partners.
• Integrity Breach: The misconduct spanned 2020–2023 and revealed gaps in oversight, reporting, and ethical culture.
• Regulatory Concern: The AFM called the incident a serious violation and a reflection of deeper issues within the audit sector.
• Industry Parallels: Similar exam fraud cases have prompted sanctions against Big Four firms in the U.S. by the PCAOB.
• Firm Response: Forvis Mazars cooperated with the investigation, accepted responsibility, and implemented new preventive measures.

Deep Dive

The Dutch Authority for the Financial Markets (AFM) has fined Forvis Mazars Accountants €446,000 for failing to prevent or detect widespread exam fraud within the firm, a breach that the regulator says strikes at the very credibility of the audit profession.

Between 2020 and 2023, nearly 100 Forvis Mazars professionals, from junior employees to partners, were found to have shared answers or collaborated during mandatory exams required to maintain audit certification. While the firm itself was unaware of the misconduct, the AFM concluded that its system of quality control and internal oversight was not robust enough to prevent or detect it.

According to the AFM, Forvis Mazars did not have clear policies or procedures in place to ensure exams were taken with integrity. The firm also failed to receive any internal reports or “speak-up” alerts about the misconduct, a signal that its internal culture and control environment were ineffective in promoting accountability.

The AFM stated that it expects audit firms to have business operations and quality systems that actively prevent unethical behavior, particularly when public confidence in audit assurance depends on it. “The credibility of an audit firm must be beyond doubt,” the regulator said, calling the violations “serious and concerning.”

A Wider Industry Issue

The AFM framed the incident as part of a broader pattern within the audit sector, where exam fraud has emerged as a symptom of deeper cultural and structural problems. Factors such as time pressure, commercial priorities, and inadequate leadership examples have contributed to similar cases abroad, most notably when the U.S. Public Company Accounting Oversight Board (PCAOB), working alongside the AFM, fined several Big Four firms over comparable exam misconduct.

While the violation was deemed serious, the AFM acknowledged mitigating factors. The exams in question played a relatively minor role in Forvis Mazars’ quality control system, and the firm cooperated fully during the investigation. Forvis Mazars has since introduced new measures to strengthen its culture, promote ethical behavior, and prevent future occurrences.

The case was settled under a simplified procedure, with Forvis Mazars accepting the fine and closing the matter.

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