The recent scandal of widespread exam cheating within major accounting firms—most notably discovered at EY in the US—has cast a shadow over the profession, sparking a necessary conversation about ethics and integrity in the accounting industry. This incident underscores the critical need for smaller firms to reflect on their own practices and consider how they might inadvertently foster a culture where cheating can occur.
Measuring Success, or Merely Outputs? As the saying goes, “What gets measured gets improved.” However, when the focus is solely on output—like pass rates for accounting exams—it can lead firms to compromise on integrity. In the rush to maintain a good recruitment reputation, larger firms may prioritize high exam pass rates over genuine learning and understanding. This can create a culture where the means are ignored, and results are all that matter. When outcomes become the sole focus, employees are incentivized to cut corners, whether it’s by sharing answers, using shortcuts, or even engaging in outright cheating. It’s a reminder that without a clear focus on the process, we may inadvertently reward unethical behavior.
Are Exams Fit for Purpose? The incident at EY highlights a fundamental flaw in the use of exams as a sole measure of competence. Tests often don’t reflect real-world skills needed in accounting roles—skills that are gained through practical experience and on-the-job learning, rather than rote memorization. The story of a young journalist learning shorthand to pass a qualification that was barely used in practice serves as a poignant example. It’s clear that standardized tests don’t always equate to a deep understanding of the profession. The same is true for accounting exams—many of which test for knowledge that can be Googled rather than genuine competency. This disconnect between testing and practical skills can lead employees to seek shortcuts, as demonstrated by the EY scandal.
Internal Culture Matters More Than We Think Exam cheating isn’t just an individual failing; it’s a symptom of a larger problem. Internal culture plays a crucial role in determining how employees approach their work and ethics. When firms create a culture of pressure to perform and pass exams at all costs, they inadvertently encourage cheating. This isn’t just about exam results—an organization’s culture extends to its broader practices, such as client service, internal processes, and employee treatment. If employees feel overworked, undervalued, or underpaid, the temptation to cheat becomes stronger. The external brand reputation of these firms is only as strong as their internal culture; a culture that tolerates cheating can lead to widespread disregard for ethical standards throughout the organization.
Conclusion The EY scandal is a wake-up call for the accounting profession. It reveals the dangers of focusing too heavily on outputs without considering the integrity of the process. Smaller firms can learn valuable lessons from these lapses in the Big Four by fostering a culture of accountability, genuine learning, and ethical behavior. The real lesson here is that without a commitment to ethical standards in every aspect of the firm’s operations—internally and externally—reputations can be easily tarnished. As the profession evolves, it must address not just what gets measured but how it gets measured and how those results are achieved. By doing so, firms can prevent similar scandals in the future and maintain their integrity and trustworthiness in a challenging market.
