KPMG Australia Partner Fined for Cheating in AI Ethics Test
A senior partner at KPMG Australia faced a hefty A$10,000 (approximately US$7,000) fine for utilizing generative AI tools to cheat on an internal training assessment focused on the responsible and ethical application of AI technology.
The Incident
In July 2025, the partner, who is a registered company auditor, uploaded a training manual into an external AI platform to generate answers for a mandatory assessment. This incident came to light through a Financial Times report.
This case is part of a broader trend of AI-related cheating, with 28 instances identified at KPMG Australia since July. Notably, most of these cases involved staff at or below managerial levels, making the partner’s actions particularly noteworthy.
Implications for Company Auditors
As a registered company auditor, partners at KPMG are held to stricter standards due to their essential role in safeguarding client financial data. According to a report by the Australian Financial Review, partners are required to download a reference manual as part of their training course on the ethical use of AI. The partner’s actions violated company policy by submitting reference material to an AI tool to answer assessment questions.
Detection and Response
The breach was flagged in August 2025 by KPMG’s internal AI monitoring tools. Following an internal investigation, KPMG imposed a fine exceeding A$10,000 in terms of future income, and the partner was instructed to retake the exam. Furthermore, the individual self-reported the incident to Chartered Accountants Australia and New Zealand, which has initiated its own investigation.
KPMG’s Challenges with AI
KPMG Australia Chief Executive Andrew Yates emphasized the firm’s struggle to keep pace with the rapid adoption of AI, especially concerning its application in internal training and assessments. “It’s a very hard thing to get on top of, given how quickly society has embraced it,” Yates stated. He highlighted the introduction of monitoring for AI in internal testing in 2024, which quickly uncovered instances of policy violations.
In response, KPMG has launched a comprehensive education campaign across the firm and has continued to implement new technologies to block access to AI during testing.
Future Transparency Standards
KPMG aims to set a new transparency standard by committing to report AI-related cheating incidents in its annual results. The firm also pledges to ensure that staff self-report any misconduct to relevant professional bodies.
