This incident is just one of 28 cases in which KPMG staff have used AI to cheat on internal exams since July, forcing the company to upgrade its AI detection processes to prevent cheating.
The partner, who is registered as an auditor and had completed AI training in July, violated the policy by uploading a reference manual recommended for training to the AI tool to assist in answering exam questions.
There are no free articles this month
KPMG’s internal AI detection tool detected this instance in August.
KPMG will now publicize cases of AI-related misconduct in its annual financial results and check whether employees comply with the obligation to self-report when misconduct occurs, both of which will put pressure on rival organizations to do the same and set a new standard for transparency in the industry.
The cheating partner has self-reported to Chartered Accountants ANZ, which is currently investigating the incident. The remaining 27 staff members are at manager level or below.
The company said the observed use of AI in exam cheating highlights the problems with the current state of the technology. KPMG said it is working to prevent such incidents.
“Like most organizations, we have been grappling with the role and use of AI in relation to internal training and testing. This is a very difficult thing to navigate given how quickly society has embraced AI,” said Andrew Yates, CEO of KPMG Australia. Australian Financial Review.
“As soon as we introduced AI monitoring for internal testing in 2024, we found examples of AI being used outside of our policies. Since then, we have conducted extensive company-wide education campaigns and continued to introduce new technology to block access to AI during testing.”
Current regulations do not require KPMG or other accounting and auditing providers to be notified. Australian Securities and Investments Commission Cheating, such as using AI to cheat in exams, is mandatory if disciplinary action is taken by the relevant authority. KPMG said it voluntarily notified ASIC as part of its discussions with the authorities.
However, the regulator told Green Party senator Barbara Pocock that KPMG had not submitted a “report on auditor misconduct using AI” to ASIC. financial review Report from December last year. original financial review Following this story, ASIC contacted KPMG about the incident and the firm voluntarily provided relevant information.
