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KPMG Australia Fines Partner A$10,000 for Using AI to Cheat on Internal Exam

The firm will disclose AI-related misconduct in its annual results after detecting 28 cases since July.

Overview

  • An unnamed audit partner uploaded a course reference manual to an external AI tool to generate answers, breaching policy, and was required to retake the test.
  • KPMG’s monitoring flagged the activity in August and the firm imposed a penalty of more than A$10,000 from future income following an internal investigation.
  • KPMG confirmed 28 AI-misuse cases in internal exams this financial year, with the remaining 27 involving staff at manager level or below.
  • The partner has self-reported to Chartered Accountants ANZ, which is examining the matter, and KPMG says it voluntarily raised the issue with ASIC.
  • KPMG introduced AI monitoring in 2024, is tightening controls and staff self-reporting checks, and faces parliamentary scrutiny including criticism of the penalty at a Senate inquiry.