company_name = KPMG
company_type = Swiss Cooperative
foundation = 1987; merger of Peat Marwick International and Klynveld Main Goerdeler
location = [http://www.kpmg.com/Global/WhoWeAre/Locations/Global/Pages/default.aspxKPMG International Headquarters]
key_people = Tim Flynn (Chairman and CEO) John B. Harrison, Chairman KPMG Asia Pacific RegionBen van der Veer, Chairman KPMG Europe, Middle East and Africa Region
num_employees = 123,000+
services = Audit
revenue = profit$19.8 billion USD (2007)
slogan = think big
homepage = [http://www.kpmg.com/ www.kpmg.com] , [http://www.kpmg.com.cn/ www.kpmg.com.cn] , [http://www.kpmg.com.hk/ www.kpmg.com.hk]
KPMG is one of the largest
professional servicesfirms in the world. KPMG employs over 123,000 people [http://www.kpmg.com/Press/11.28.2007.htm KPMG revenues grow 17.4%] ] in a global network of member firms spanning over 145 countries. [ [http://www.kpmg.com/About/ About KPMG] ] Composite revenues of KPMG member firms in 2007 were $19.8 billion USD (17.4% growth from 2006). KPMG has three lines of services: audit services, taxservices, and advisory services.
KPMG is a Big Four auditor, alongside
PricewaterhouseCoopers, Ernst & Youngand Deloitte Touche Tohmatsu.
The roots of the name "KPMG" stem from four partners in the firms that merged to form KPMG.
*K stands for Klynveld. This originates from the accounting firm
Klynveld Kraayenhof & Co.founded by Piet Klynveldin Amsterdamin 1917.
*P is for Peat, originating from the accounting firm William Barclay Peat & Co., which was founded by
William Barclay Peatin Londonin 1870.
*M stands for Marwick.
James Marwickfounded the accounting firm Marwick, Mitchell & Co. together with Roger Mitchellin New York Cityin 1897.
*G is for Goerdeler. Dr.
Reinhard Goerdelerwas for many years chairman of the German Deutsche Treuhand-Gesellschaft (DTG) and later chairman of KPMG. He is credited with laying much of the groundwork for the KMG merger.
William Barclay Peatformed an accounting firm in London[http://www.kpmg.co.uk/about/history/index.cfm KPMG - History] ]
*In 1877 accountancy firm Thomson McLintock opens in
*In 1911, William Barclay Peat & Co. and Marwick Mitchell & Co. merged to form Peat Marwick Mitchell & Co, later known as Peat Marwick.
* In 1917 Klynveld opened his accounting-firm in Amsterdam. Later he merged with Kraayenhof to Klynveld & Kraayenhof Accountants.
*In 1979, Thomson McLintock forms KMG (Klynveld Main Goerdeler) a grouping of independent national practices to create a strong European-based international firm.
*In 1987 Thomson McLintock/KMG and Peat Marwick joined forces in the first mega-merger of large accounting firms and formed a firm called KPMG in the US and Peat Marwick McLintock in the UK.
* In 1990, the two settled on the common name of KPMG Peat Marwick McClintock.
* In 1991, the firm is renamed KPMG Peat Marwick.
* In 1995, the name is reduced again to KPMG.
*In 1997, KPMG and
Ernst & Youngannounced that they were to merge, in a manoeuvre largely seen as a spoiling tactic over the merger of Price Waterhouseand Coopers & Lybrand. However that merger, to form PricewaterhouseCoopers, was granted regulatory approval while the KPMG/Ernst & Young tie-up was later abandoned. [ [http://findarticles.com/p/articles/mi_m0EIN/is_1997_Oct_20/ai_19892580 Ernst & Young, KPMG merger to create US juggernaut] ]
*In 2001, KPMG divested its U.S. consulting firm through an
IPOof KPMG Consulting Inc, which is now called BearingPoint, Inc.. [ [http://www.itworld.com/Man/3870/021002bearingpoint/ KPMG Consulting becomes Bearing Point] ]
*In 2002, the UK and Dutch consulting arms were sold to
Atos Origin. [ [http://www.itworld.com/Man/3870/020605atosoriginkpmg/ French Atos buys two KPMG consulting units] ]
*In 2003, KPMG agreed to pay $125 million to settle a lawsuit stemming from the firm's audits of the drug chain
Rite Aid. [ [http://goliath.ecnext.com/coms2/gi_0198-120108/KPMG-agrees-to-settle-Rite.html KPMG agrees to settle Rite Aid suit.] ]
*In 2003, KPMG divested itself of its legal arm, Klegal. [ [http://www.newstatesman.com/pdf/lawsupp2004.pdf "Are they off their trollies?" New Statesman article] ]
*In 2003, KPMG LLP sold its Dispute Advisory Services to FTI Consulting. [ [http://www.fticonsulting.com/web/about/pressreleases/10/FTI_Consulting_Completes_Acquisition_of_Dispute_Advisory_Services_Business_Of_KPMG.html FTI Consulting Completes Acquisition of Dispute Advisory Services Business Of KPMG] ]
*In 2004, KPMG agreed to pay $115 million to settle lawsuits stemming from the collapse of software company
Lernout & HauspieSpeech Products NV. [ [http://www.cfo.com/article.cfm/3282683 KPMG Pays $115 Million to Settle Suit] ]
*In 2005, the U.S. member firm admitted criminal wrongdoing in a multi-billion dollar tax shelter fraud. [ [http://www.accountancyage.com/accountancyage/news/2201585/kpmg-tax-shelter-case-postponed KPMG tax shelter case postponed] ]
Fannie Maesued KPMG for malpractice for approving years of erroneous financial statements. [ [http://www.washingtonpost.com/wp-dyn/content/article/2006/12/12/AR2006121201386.html Fannie Sues KPMG for Approving Bad Numbers] ]
*In February 2007, KPMG Germany investigated for ignoring questionable payments in
Siemensbribery case. [ [http://online.wsj.com/article/SB117219374546016790-search.html?KEYWORDS=kpmg&COLLECTION=wsjie/6month KPMG Germany's Failure to Spot Siemens Problems Raises Questions] ]
*In October 2007, KPMG's member firms in the
UK, Germany, Switzerlandand Liechtensteinmerged to form KPMG Europe LLP. They now have joint Chairmen, John Griffith-Jones and Ralf Nonnenmacher.
*In March 2008, KPMG accused of enabling “improper and imprudent practices” at
New Century Financial, a failed mortgage company. [ [http://www.nytimes.com/2008/03/26/business/26cnd-account.html?_r=1&hp Report Assails Auditor for Work at Failed Home Lender] ]
*In March 2008, KPMG agreed to pay $80 million to settle suits from
Xeroxshareholders over manipulated earnings reports. [ [http://www.webcpa.com/article.cfm?articleid=27255 KPMG and Xerox Settle Securities Lawsuit] ]
Legal structure and executives
Each national KPMG firm is an independent legal entity and is a member of KPMG International, a Swiss
cooperativeregistered in the Swiss Canton of Zug. KPMG International changed its legal structure from a Swiss Vereinto a cooperativeunder Swiss law in 2003. [ [http://hrazg.ch/ Handelsregister des Kantons Zug] (Registration Number CH-020.6.900.276-5) ]
KPMG International is led by:
* Timothy P. Flynn, Chairman-Americas Region, Chairman and CEO of KPMG LLP (US), has led KPMG International since October 01 2007;
* Carlson Tong and John B. Harrison, Chairman-Asia Pacific Region, Partner of KPMG in China and Hong Kong;
* Ben van der Veer, Chairman-Europe, Middle East and Africa Region, Chairman of KPMG in the Netherlands.
KPMG offers the following services: [ [http://kpmg.com/Services/ KPMG Global Services] ]
* Audit: Statutory Audit and Financial Statement Audit
* Tax: Business and Personal Tax services
* Advisory: KPMG's advisory services are organized into three themes (growth, governance and performance) and nine service lines:
*# Accounting Advisory Services
*# Business Performance Services
*# Financial Risk Management Services
*# Internal Audit Services.
*# IT Advisory
*# Transaction Services (M&A)
*# Actuarial services
KPMG member firms serve as the independent auditors for a large number of major corporations:
Accenture, FTI Consulting, Gartner, Shaw Group
*Construction and Real Estate
AMEC, Carillion, CB Richard Ellis, KBR, Lend Lease Corporation, Lexington Realty Trust, Tishman Speyer, Jones Lang LaSalle
Citgo, Devon Energy, Halliburton, Husky, Kuwait Petroleum Corporation, LUKoil, Murphy Oil, Occidental Petroleum, Petrobras, Reliant Energy, Sinopec, TransCanada Pipelines, Valero Energy Corporation
*Financial Services: AIB,
Aetna, Allianz, Bank of East Asia, Bank of Montreal, Bank of New York Mellon, Citigroup, Climate Exchange, Countrywide Financial, Credit Suisse, Deutsche Bank, Deutsche Börse, Dresdner Bank, Fidelity National Financial, Fidelity National Information Services, First Republic Bank, International Bank of Commerce, Hang Seng Bank, HBOS, HSBC, Legg Mason, MassMutual Financial Group, Moody's, Munich Re Group, Nationwide Financial, Northern Trust, Old Mutual, Oppenheimer Funds, Prudential plc, Postfinance, Raymond James Financial, Salomon Smith Barney, Standard Chartered Bank, Travelers, Visa International, Wachovia, Wells Fargo
*Government & Education:
Georgia Lottery, St. Mary's University, Santa Clara University, CPS Energy, City of San Antonio, State of Texas, State of Illinois, University of Chicago, US Department of Homeland Security, US Department of Justice, US Department of Energy, US Department of Interior, State of New Jersey, Office of Personnel Management, US Department of Treasury, Triumphant Institute of Management Education
Ansell, Caremark, Kaiser Foundation, Res-Care, Providence Health System, Swedish Health Services, Mount Auburn Hospital, Partners In Health
Asahi Glass Co., BASF, BMHC, BMW, Cemex, DaimlerChrysler, General Electric, Honda, Jabil Circuit, Komatsu Limited, Matsushita Electric Industrial Co., Mitsubishi Electric, Navistar International, Severstal, Siemens AG, Sumitomo Group, ThyssenKrupp AG, Weyerhaeuser
BBC, Bertelsmann, ITV, Metro International, National Geographic Society, NBC Universal, R.H. Donnelley, RealNetworks, Sega, Sony BMG, Sun-Times Media Group, Wolters Kluwer, Virgin Group
BHP Billiton, Rusal
*Retail & Consumer Products:
Alberto-Culver, Arla, Asahi Breweries, Burger King, Cargill, Carlsberg, Carrefour, Circuit City, ConAgra Foods, Costco, Darden Restaurants, Diageo, Federated Department Stores, Jack in the Box, J.C. Penney, General Mills, Hasbro, Heineken, Hooters of America, Macy's, Metro AG, Mohawk Industries, Morton's of Chicago, Nestlé, Netflix, Office Max, PepsiCo, Publix Super Markets, R.J. Reynolds Tobacco, Ruth's Chris Steakhouse, Seaboard, Shiseido, Supervalu, The Hershey Company, Home Depot, Maple Leaf Foods, Winn-Dixie, Yum! Brands
Adobe Systems, Apple Computer, Applied Materials, Beckman Coulter, Boston Scientific, Carl Zeiss AG, CA Inc., Cerner, CNET Networks, Dolby Laboratories, Electronic Arts, EDS, Ericsson, LG Group,Morrison Supermarket, Motorola, National Semiconductor, Navteq, Nortel, Philips, Samsung, Sanmina-SCI, Siemens, Symantec, TDK Corporation, TiVO, WebEx, VeriSign, Infosys, Wipro
Cable & Wireless, CenturyTel, China Mobile, China Telecom, Citizens Communications, Embarq, PCCW, Rogers Communications, SprintNextel, Qwest, Cablevision
*Travel and Transportation:
Air France, Alaska Airlines, Amtrak, Asiana Airlines, Brink's, BMW, Cathay Pacific, China Southern Airlines, Chrysler LLC, Daimler AG, easyJet, EWS, EVA Air, Frontier Airlines, KLM, MTR Corporation, Norfolk Southern Railway, Ryanair, US Airways, WestJet, Qantas
Tax shelter fraud
In early 2005, the United States member firm, KPMG LLP, was accused by the
United States Department of Justiceof fraud in marketing abusive tax shelters. KPMG LLP admitted criminal wrongdoing in creating fraudulent tax shelters to help wealthy clients avoid $2.5 billion in taxes and agreed to pay $456 million in penalties in exchange for a deferred prosecution agreement. KPMG LLP would not face criminal prosecution if it complied with the terms of its agreement with the government. On January 3, 2007, the criminal conspiracy charges against KPMG were dropped. [ [http://www.washingtonpost.com/wp-dyn/content/article/2007/01/03/AR2007010301883.html Charge Against KPMG Dropped] Carrie Johnson, January 4, 2007, Washington Post] However, Federal Attorney Michael J. Garcia stated that the charges could be reinstated if KPMG does not continue to submit to continued monitorship through September 2008. [ [http://www.iht.com/articles/ap/2007/01/03/business/NA_FIN_US_KPMG_Tax_Shelters.php Prosecutors end tax-shelter case against KPMG, dropping charge after settlement] January 3, 2007, International Herald Tribune]
Before the settlement, the firm, on the advice of its counsel Skadden, Arps, Slate, Meagher & Flom LLP, removed several tax partners and admitted "unlawful conduct" by those partners. The firm agreed to cooperate with DOJ's investigation and help prosecute former partners who had devised and sold the tax shelters. Additionally, the firm hired former U.S. district judge Sven Erik Holmes to monitor its legal and regulatory affairs.
KPMG is one of the top 10 companies for working mothers. [ [http://www.workingmother.com/web?service=direct/1/ViewArticlePage/dlinkFullFeaturedArticle&sp=601&sp=94 Working Mother] ] It is also ranked No. 71 on Fortune Magazine's list of 100 Best Companies to Work For, voted for by employees. [ [http://money.cnn.com/magazines/fortune/bestcompanies/2008/full_list/ Fortune Magazine's 100 Best Companies to Work For] ]
KPMG ranks No. 5 out of 125 among companies with the best training programs according to "Training Magazine". [ [http://www.kpmgcareers.com/whoweare/training.pdf Extract from Training Magazine] ]
KPMG was the preferred employer among the Big Four accounting firms according to College Grad.com. [ [http://www.collegegrad.com/press/big-four.shtml College Grad.com] ] It was also ranked No.5 on the list of "50 Best Places to Launch a Career" in 2008. [ [http://bwnt.businessweek.com/interactive_reports/career_launch_2008/index.asp Best Places to Launch a Career] ]
In 2008 KPMG in the UK was named the best big company to work for by The Times. This was the fourth consecutive year that KPMG has made the top three winning three times in that four years. [ [http://www.cimaglobal.com/cps/rde/xchg/live/root.xsl/1630_11502.htm?itemid=18502929&categoryname=Structure KPMG - Best Big Company to Work For] ]
ponsorship and Media
In February 2008, Phil Mickelson, ranked one of the best golfers in the world, signed a three-year global sponsorship deal with KPMG. As part of the agreement, Mickelson will wear the KPMG logo on his head wear during all golf related appearances. Mickelson will also attend a number of KPMG sponsored marketing events. [ [http://www.pgatour.com/2008/tournaments/r005/02/06/mickelson_release/index.html Mickelson signs agreement with KPMG LLP] ]
Notable current and former employees
Margaret Jackson- chairman of QANTAS(2000-2007)
Syd Kessler- entrepreneur
*Michael O'Leary - CEO of
Zarin Patel- CFO of the BBC
Colin Sharman, Baron Sharman- chairman of Aviva (2006-present)
* Sir Michael Rake - Chairman of BT (2007- present)
* Kerrii B. Anderson - CEO and President of
Wendy's International, Inc. (2007 - Present)
Politics and public service
Steve Bracks- Premier of Victoria, Australia(1999-2007)
Jerry Finnell- Mayor of Del Mar, California(2004-present)
Nick Gibb- Member of the British Parliament(1997-present)
Mark Harper- Member of the British Parliament(2005-present)
Toby Harris, Baron Harris of Haringey- member of the London Assembly(2000-04); chairman of the Metropolitan Police Authority(2000-04)
*Michael Hirst - Member of the
Edmund Ho- Chief Executive of Macau(1999-present)
Hilbrand Nawijn- Dutch Minister for Integration (2002-2003)
L. Glenn Perry- Chief Account United States Securities and Exchange CommissionEnforcement Division (1982-1984) [ [http://www.sec.gov/news/digest/1982/dig092382.pdf SEC News Digest, September 23, 1984] ]
Kevin Rudd- Australian Prime Minister(2007-present)
Rita Verdonk- Dutch Minister for Integration and Immigration (2003–2007)
Leslie Ferrar- Treasurer to Charles, Prince of Wales
Amr Khaled- Extremely popular moderate Muslimpreacher.
Bruce Marshall- Writer
Michael Peat- Principal Private Secretary to Charles, Prince of Wales
Nate Silver- Managing Partner of Baseball Prospectus, creator of PECOTAbaseball projection system, [ [http://sports.espn.go.com/espn/page2/story?page=keri/070214 'Tis the season to project stats] Jonah Keri, February 14, 2007, ESPN] and creator of political blog FiveThirtyEight.com.
Paul Tisdale- Former football player
Johan van der Walt- Forensic auditor
Kateryna Yushchenko-Chumachenko- wife of Viktor Yushchenko, current President of Ukraine
Bernard Avishai- Writer
" [http://www.pbs.org/wgbh/pages/frontline/shows/tax/ Tax Me if You Can] " - PBS Frontline documentary into corporate tax avoidance and its implications, including the role of KPMG in tax related services
* [http://www.kpmg.com/ Offical international website]
* [http://www.theregister.co.uk/2005/11/28/kpmg.mp3 KPMG Anthem]
* [http://www.kpmginsiders.com/ KPMG Insiders news service]
* [http://ilovebig4.com/category/kpmg/ ILoveBig4.com] - Weblog with news about KPMG and other Big Four auditors
* [http://www.kpmg.com.cn/ KPMG in China website]
* [http://www.kpmg.com.cn/redirect.asp?id=0176 KPMG in China enewsletter]
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