Investigation into Internal and External Exams Concluded at BDO Netherlands

At the request of the Dutch Authority for the Financial Markets (AFM), BDO Netherlands investigated whether there had been any irregularities in the administration of internal and external exams during the period from January 1, 2018 to December 31, 2023. The investigation showed that undesirable behaviors had occurred, including taking exams together and receiving and distributing answers. The outcomes of the investigation led directly to strengthening the internal control environment around the administration of exams. Because BDO did not prevent the irregularities, the AFM imposed a fine of €765,000, which BDO has accepted.

Following the initial investigation results, BDO immediately tightened and improved its exam and control procedures. A thorough root cause analysis was conducted to identify the underlying causes of the behavior. Based on this, additional measures will be taken to prevent recurrence. BDO has also taken disciplinary action against the involved partners and employees.

The AFM mitigated the fine because BDO cooperated constructively with the investigation and took measures to prevent recurrence, which appear to be adequate. In addition, the AFM estimates that the implications of the exam fraud have remained limited, as the administration of internal exams played a relatively minor role within the quality control system. BDO has made it plausible that it ensured the required professional competence of its employees in several ways.

René Nelis, CEO of BDO Netherlands:

“The outcomes of the investigation affect us deeply. We greatly regret this situation. Trust in the accountancy profession – and therefore in our organization – is of great societal importance. That trust is the basis of our work and our reputation. We take very seriously that this trust has been damaged by these behaviors. We accept the fine and consider the investigation closed, but of course, we will continue to work on the improvement plans that have been drawn up based on the root cause analysis.”

Engelhardt Robbe, Chairman of the Supervisory Board of BDO Netherlands:

“We deeply regret the findings of the investigation and we are aware of the societal impact of these findings. We see it as our task to closely monitor the progress of the strengthening of the internal control environment. We want to contribute to an organizational culture in which taking responsibility is second nature and in which learning and improvement remain central.”