Region

Jurisdiction

Regulator

2026-05-27

AFM Upheld in Appeal Regarding Disciplinary Case Against External Accountant

The Dutch Authority for the Financial Markets (AFM) successfully upheld its disciplinary action against an external accountant after the Administrative Jurisdiction Division of the Council of State (CBb) dismissed the accountant's appeal as entirely unfounded. The court confirmed the Accountants Chamber's 2022 ruling, which found the accountant failed to maintain professional skepticism and gather sufficient audit evidence for two statutory audits, warranting a three-month suspension from the professional register. This decision reinforces the regulatory framework's commitment to enforcing professional competence, ensuring public trust in financial statements, and applying disciplinary sanctions for serious breaches of due care.

Netherlands

Autoriteit Financiele Markten

News

27/05/26

The Dutch Authority for the Financial Markets (AFM) filed a disciplinary complaint in 2020 against an external accountant from an accounting firm holding a regular license, due to the circulation of two audit reports that could not be relied upon. This complaint was previously largely upheld by the Accountants Chamber. This remains upheld. The subsequent appeal lodged by the accountant with the Administrative Jurisdiction Division of the Council of State (CBb) was declared entirely unfounded.

In Short

Accountant was insufficiently professionally critical and did not gather sufficient and appropriate audit evidence

Accountants Chamber already upheld AFM's position in 2022

CBb again upholds AFM's position

The purpose of disciplinary law is to maintain the accounting profession at a high level and to learn from mistakes

Accountant was insufficiently professionally critical and did not obtain sufficient and appropriate audit evidence The accountant performed insufficient work to obtain sufficient and appropriate audit evidence during two statutory audits. Furthermore, the accountant did not conduct the statutory audits with the required professional skepticism, and he substantively altered one of the audit files without complying with the applicable regulations. The accountant acted in violation of the fundamental principles of professional competence and due care. This is serious, as users of financial statements must be able to rely on the information contained therein, as it forms the basis for important financial decisions, such as investments and trading transactions.

Accountants Chamber already upheld AFM's position in 2022 The disciplinary complaint was largely upheld by the Accountants Chamber in 2022. The Accountants Chamber imposed a disciplinary sanction on the accountant in the form of a temporary suspension from the register for three months. The accountant appealed the decision.

CBb again upholds AFM's position The Court confirms that the Accountants Chamber's ruling stands in all respects. It is of the opinion that the nature and seriousness of the allegations are such that a temporary suspension of three months is appropriate and warranted.

The purpose of disciplinary law is to maintain the accounting profession at a high level and to learn from mistakes Disciplinary law is intended to maintain the quality of the accounting profession and to learn from it. It also aims to contribute to public trust in the profession. Users of financial statements must be able to rely on the information in the financial statements and the issued audit report.