PCAOB fines PwC Israel $2.75M amid ongoing sweep for internal training exam cheating

The Israeli affiliate of Big Four audit firm PwC agreed to pay $2.75 million to settle allegations it failed to prevent widespread cheating on training examinations despite internal warnings to staff about an ongoing crackdown.

PwC Israel failed to implement required quality control standards related to integrity and personnel management by allowing its staff to “engage in improper answer sharing,” the Public Company Accounting Oversight Board (PCAOB) said in a press release Tuesday.

“The PCAOB will not tolerate cheating or other unethical behavior at PCAOB-registered audit firms, regardless of whether the firm is located in the United States or abroad,” said Chair Erica Williams in the release.

PwC Israel did not immediately respond to a request for comment.

Big Four accounting firms have been no stranger to exam cheating scandals, with landmark settlements against two China-based PwC affiliates in 2023 for a $7 million total. In April 2024, KPMG Netherlands paid a record $25 million fine to the PCAOB, while Ernst & Young paid a another record penalty, $100 million to the Securities and Exchange Commission (SEC), in 2022.