NEW YORK (Reuters) - The U.S. accounting watchdog on Wednesday said it has hit KPMG Netherlands with a $25 million civil penalty for violations of accounting and quality control rules related to widespread exam cheating.

The Public Company Accounting Oversight Board said the penalty, a record for the agency, was in response to widespread improper answer sharing at the company, as well as "multiple misrepresentations" to the watchdog about knowledge of the misconduct.