PwC Israel Fined $2.75 Million for Training Exam Violations

The Public Company Accounting Oversight Board (PCAOB) has penalized PwC Israel, also known as Kesselman & Kesselman C.P.A.s, with a $2.75 million fine for failing to prevent extensive cheating on mandatory internal training exams from 2017 to 2022. Hundreds of staff members were involved in improperly sharing answers during tests focused on U.S. auditing practices and ethics. PCAOB chair Erica Williams emphasized that such unethical behavior undermines investor trust and that the board will hold audit firms accountable for their actions. This incident marks the tenth time since 2021 that the PCAOB has sanctioned firms for similar quality control violations, highlighting a persistent issue within the industry. Additionally, PwC Israel must enhance its quality control policies and report back to the PCAOB within 150 days. The firm has agreed to the sanctions without admitting or denying the findings.