A KPMG partner loses more than A$10,000 for using AI to cheat on an AI test

February 2026 — A KPMG Australia partner was penalised more than A$10,000 after using AI to answer a question on the firm's own AI training exam. Here's what happened, what it cost, and what went wrong.

Cost and outcome (as of Feb. 17, 2026)

Outcome: the partner was "fined A$10,000 (£5,200)" after KPMG's detection tools caught the cheating. (The Guardian)
Cost: the partner "will forfeit more than $10,000 in future income." (HRD)
Scale: 28 cases of AI-related cheating since July; the other 27 involve staff at or below manager level. (Accounting Times)
Status: the partner self-reported to Chartered Accountants Australia and New Zealand, which is investigating. (Accounting Times)

What happened

The partner is a registered company auditor who completed mandatory AI training in July, HRD reported. The course recommended downloading a reference manual. The partner uploaded that document into an AI tool to generate an answer to an exam question, which broke firm rules.

KPMG's internal systems flagged it in August, and an investigation decided on the fine, HRD reported.

KPMG Australia employs about 10,000 people and runs more than 20,000 internal tests a year, according to HRD. The tests are open-book, but uploading course material into AI tools during a test is banned.

How KPMG found it

"As soon as we introduced monitoring for AI in internal testing in 2024, we found instances of people using AI outside our policy," chief executive Andrew Yates told the AFR, as quoted by Accounting Times. "We followed with a significant firm-wide education campaign and have continued to introduce new technologies to block access to AI during testing."

"It's a very hard thing to get on top of given how quickly society has embraced it," Yates said. "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," he said, according to The Guardian.

KPMG says it will disclose AI-related cheating cases in its annual results and check that staff meet their duty to self-report misconduct, Accounting Times reported.

The regulator's version

KPMG says it voluntarily notified the Australian Securities and Investments Commission as part of discussions with the agency, Accounting Times reported. But ASIC told Greens senator Barbara Pocock that KPMG had not filed a report "about the instances of auditors cheating using AI" before the AFR's December report, Accounting Times said. That report led ASIC to contact KPMG, which then provided the information voluntarily, the outlet said.

Firms are not required to notify ASIC of this kind of misconduct unless there is a disciplinary finding by the relevant body, Accounting Times reported.

A familiar problem

In 2021, KPMG Australia was fined A$615,000 after more than 1,100 partners were found to have been involved in "improper answer-sharing" on tests, The Guardian reported.

The same firm wants staff using AI. Partners will reportedly be assessed on their AI use in 2026 performance reviews. "We all have a responsibility to be bringing AI to all of our work," said Niale Cleobury, KPMG's global AI workforce lead, according to The Guardian.

What went wrong

Open-book met AI. The tests let staff download course materials, which made uploading them to an AI tool a one-step shortcut.
It wasn't rare. KPMG found 28 cases since July, after monitoring began in 2024.
Reporting lagged. ASIC says KPMG had filed no report before the AFR's December report, Accounting Times said, and that the report led ASIC to contact the firm.
What we don't know yet: which AI tool was used, what the other 27 staff faced, and what CA ANZ will decide.

Our follow-up question for KPMG Australia

What penalties did the other 27 staff receive, and how many cases has KPMG found since February?

Sources

The Guardian, “KPMG partner fined for using artificial intelligence to cheat in AI training test,” Feb. 16, 2026. theguardian.com
HRD (Human Resources Director), Jonalyn Cueto, “KPMG partner fined over AI exam breach,” Feb. 16, 2026. hcamag.com
Accounting Times, Daniel Croft, “KPMG partner uses AI to cheat on AI test, faces fine,” Feb. 17, 2026. accountingtimes.com.au
The Australian Financial Review, headline per its URL, “KPMG partner fined for using AI to cheat on an AI test,” Feb. 15, 2026 (paywalled; not read). afr.com

Disclosure: [not in copy] Editor placeholder