TITLE: ACCA to Halt Remote Exams Amid AI Cheating Rise

ACCA Ends Remote Exams to Combat AI-Facilitated Cheating

The Association of Chartered Certified Accountants (ACCA), the world's largest accounting body, will discontinue remote exam options for its students starting in March, citing an inability to effectively monitor cheating enabled by artificial intelligence tools.

The policy shift requires candidates to take assessments in person unless exceptional circumstances apply. ACCA, which boasts nearly 260,000 members and more than 500,000 students worldwide, introduced remote testing during the COVID-19 pandemic to ensure continuity amid lockdowns. However, the rise of sophisticated AI has made online proctoring increasingly unreliable.

"We're seeing the sophistication of [cheating] systems outpacing what can be put in, [in] terms of safeguards," said Helen Brand, ACCA's chief executive, in an interview. She noted that the organization has invested intensively in anti-cheating measures but that determined individuals are advancing faster than defenses can adapt.

The decision comes amid broader concerns in the accounting profession about exam integrity. In 2022, the UK's Financial Reporting Council (FRC), the industry regulator, described cheating in professional qualifications as a "live" issue affecting major firms. Investigations revealed instances involving tier-one auditors, including the "big four" — KPMG, PwC, Deloitte and EY — as well as Mazars, Grant Thornton and BDO.

High-profile penalties underscore the problem. EY agreed to a record $100 million fine to U.S. regulators in 2022 after dozens of employees cheated on an ethics exam and the firm misled investigators. Similar multimillion-dollar fines have been levied globally against large auditing firms for test-related scandals.

Brand highlighted AI's role in pushing cheating to a "tipping point." Tools like generative AI can now assist in real-time during exams, evading traditional safeguards such as webcam monitoring. ACCA's move aligns with a trend away from remote invigilation in high-stakes testing. "There are very few high-stakes examinations now that are allowing [remote invigilation]," Brand said.

Broader Industry Response to Cheating Scandals

The Institute of Chartered Accountants in England and Wales (ICAEW), another major training body, reported increasing cheating incidents last year but continues to permit some online exams. Despite this, pressure mounts across the sector for stricter in-person requirements.

The FRC's scrutiny extends beyond individual cases. Recent investigations include Deloitte's audits of mining firm Glencore over eight years, EY's breach in the Thomas Cook audit leading to a nearly £5 million fine, and PwC's £2.9 million penalty for the Wyelands Bank audit. KPMG faces probes over its work for gambling company Entain, while PwC encountered a record £47 million fine and six-month ban in China related to the Evergrande audit.

These cases illustrate systemic challenges in maintaining ethical standards. PwC also faced a £15 million fine for failing to report suspected fraud at a City firm and has begun tracking employee locations to enhance oversight.

Implications for Students and the Profession

For ACCA's vast student base, the change means logistical adjustments, particularly for those in remote or international locations. Nearly 4,000 candidates recently sat exams at London's ExCeL centre, highlighting the scale of in-person testing. The body emphasizes that exceptional circumstances, such as disabilities or geographic barriers, will still allow remote options on a case-by-case basis.

The accounting sector, vital to global finance, relies on these qualifications for credibility. Cheating undermines public trust, especially as firms handle complex audits amid economic volatility. Regulators worldwide are intensifying efforts, with the FRC and equivalents pushing for robust verification.

As AI evolves, professional bodies must balance accessibility with integrity. ACCA's policy aims to restore confidence in its credentials, ensuring graduates meet rigorous standards in an era of technological disruption.

This development follows a pattern of regulatory actions. In June 2024, commentary noted that scandals spotlight the big four but leave underlying corporate structures unexamined. Ongoing probes, such as those into PwC's China operations, signal continued vigilance.

ACCA's student numbers reflect the profession's appeal, but maintaining exam security is crucial for its reputation. With over half a million learners, the shift to in-person testing could reshape qualification pathways globally.