Deloitte Touche Tohmatsu
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2008-07-16T17:43:42Z
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{{Infobox_Company |
company_name = Deloitte Touche Tohmatsu |
company_logo = [[Image:Deloitte.svg|150px|Deloitte's brand logo]] |
company_type = [[Swiss Verein]]|
foundation = [[London]], [[United Kingdom]] (1845) |
location = [[New York City]], [[New York]], [[United States|U.S.]] [http://www.deloitte.com/dtt/section_home/0,1041,sid%253D1023,00.html]|
key_people = [[Barry Salzberg]], [[Chief executive officer|CEO]]<br />[[Sharon Allen]], [[Chairman of the board|Chairman of the Board]] |
industry = [[Professional services]] |
services = [[Audit]]<br />[[Tax]]<br />[[Consulting]]<br />[[Financial advisory]] |
revenue = {{profit}}[[United States dollar|US$]]23.1 billion (2007) |
num_employees = 165,000 (May 2008) |
homepage = [http://www.deloitte.com/ www.deloitte.com]
}}
'''Deloitte Touche Tohmatsu''' (also branded as '''Deloitte.''') is one of the largest [[professional services]] firms in the world and one of the [[Big Four auditors]], along with [[PricewaterhouseCoopers]], [[Ernst & Young]], and [[KPMG]].
According to the firm's website as of 2008, Deloitte has approximately 165,000 professionals at work in 142 countries, delivering [[audit]], [[tax]], [[consulting]], and [[financial advisory]] services.<ref>[http://www.deloitte.com/dtt/section_node/0,1042,sid%253D147431,00.html Deloitte: facts and figures]</ref>
Deloitte Touche Tohmatsu is a [[Swiss Verein]], a [[voluntary association|membership organization]] under the Swiss Civil Code whereby each member firm is a separate and independent [[juristic person|legal entity]]. Its global headquarters are located in [[New York City]], [[New York]].<ref>[http://www.deloitte.com/dtt/section_home/0,1041,sid%253D1023,00.html Deloitte Head Office]</ref> European headquarters are located in [[London]].
== History ==
===Early history===
In [[1845]] [[William Welch Deloitte]] opened an office in Basinghall Street in London: he was the first person to be appointed an independent auditor of a public company.<ref name="history">[http://www.deloitte.com/dtt/section_node/0,1042,sid%253D76339,00.html Deloitte history]</ref> He went on to open an office in [[New York]] in [[1880]].<ref name="history" />
In [[1895]] Charles Waldo Haskins and Eijah Watt Sells formed Haskins & Sells in [[New York]].<ref name="history" />
In [[1898]] [[George Touche]] established an office in [[London]] and then in [[1900]] joined John Ballantine Niven in establishing the firm of Touche Niven in the Johnston Building at 30 [[Broad Street (Manhattan)|Broad Street]] in [[New York]].<ref name="history" /> At the time, there were fewer than 500 [[Certified Public Accountant|CPAs]] practicing in the United States, but the new era of [[income taxes]] was soon to generate enormous demand for accounting professionals.
===1930s===
{{seealso|Ultramares Corporation v. Touche}}
On [[April 1]], [[1933]], Colonel Arthur Hazelton Carter, President of the New York State Society of Certified Public Accountants and Managing Partner of Haskins & Sells, testified before the [[U.S. Senate Committee on Banking and Currency]]. Carter helped convince Congress that independent audits should be mandatory for public traded corporations.<ref name="history" />
===1940s===
In [[1947]], Detroit accountant George Bailey, then president of the [[American Institute of Certified Public Accountants]], launched his own organization. The new entity enjoyed such a positive start that in less than a year, the partners merged with Touche Niven and A.R. Smart to form Touche, Niven, Bailey & Smart.<ref name="history" /> Headed by Bailey, the organization grew rapidly, in part by creating a dedicated Management Consulting function. It also forged closer links with organizations established by the cofounder of Touche Niven, George Touche: the Canadian organization Ross, Touche and the British organization George A. Touche.<ref name= "history" /> In [[1960]], the firm was renamed Touche, Ross, Bailey & Smart, becoming Touche Ross in [[1969]].<ref name="history" />
===The 1950s===
In [[1952]] Deloitte merged with Haskins & Sells to form Deloitte, Haskins & Sells.<ref name="history" />
===The 1960s===
In [[1968]] [[Nobuzo Tohmatsu]] formed Tohmatsu Awoki & Co, a firm based in [[Japan]] that was to become part of the Touche Ross network in [[1975]].<ref name="history" />
===The 1970s===
In [[1972]] Robert Trueblood, Chairman of Touche Ross, led the committee responsible for recommending the establishment of the [[Financial Accounting Standards Board]].<ref name="history" /> He led the expansion of Touche Ross in that era.
===The 1980s===
In [[1982]], David Moxley and W. Grant Gregory became the leaders at Touche Ross. In [[1985]], Edward A. Kangas, a management consultant, was appointed managing partner of Touche Ross. In [[1984]], [[J. Michael Cook]] became managing partner of Deloitte, Haskins & Sells.
In [[1989]] the global firm of Touche Ross broke up. Led by the US business, some country partnerships of Touche Ross merged with Deloitte Haskins Sells to form Deloitte & Touche: the merged firm was led by J. Michael Cook and Edward A. Kangas. Led by the UK partnership a smaller number of firms rejected that merger and shortly thereafter merged with Coopers & Lybrand to form Coopers & Lybrand Deloitte (later to become PwC).
===The 1990s===
[[Image:DeloitteOfficeChicago.jpg|thumb|right|Deloitte Office Building in Downtown Chicago]]
In [[1993]] the international firm was renamed Deloitte Touche Tohmatsu to reflect the contribution from the [[Japan]]ese firm.<ref name="history" />
In [[1995]], the partners of Deloitte & Touche decided to create Deloitte & Touche Consulting Group (later Deloitte Consulting).<ref>[http://findarticles.com/p/articles/mi_m0EIN/is_1996_April_10/ai_18174094 Deloitte & Touche Consulting Group take more than 30 organisations live with SAP]</ref>
===The 2000s===
Following the demise of [[Arthur Andersen]] in [[2002]], almost half of the Partners and Staff of the UK business of Arthur Andersen joined the Deloitte firm.
The Deloitte US firms started its operations in India in the year 2000, now called Deloitte India (formerly known as Region 10). Since then they have led the way in remote delivery of services. Their offices in Mumbai and Hyderabad currently employ over 6,000 professionals.
==Branding==
While in 1989, in most countries, Deloitte, Haskins & Sells merged with Touche Ross forming Deloitte & Touche, in the [[United Kingdom]] the local firm of Deloitte, Haskins & Sells merged instead with Coopers & Lybrand (which today is [[PricewaterhouseCoopers]]).<ref>[http://www.pwc.com/pl/eng/about/main/history.html PWC: History and milestones]</ref> For some years after the merger, the merged UK firm was called Coopers & Lybrand Deloitte and the local firm of Touche Ross kept its original name. In the mid-1990s however, both UK firms changed their names to match those of their respective international organisations.
While the full name of the firm is '''Deloitte Touche Tohmatsu''', in [[1989]] it initially branded itself '''Deloitte & Touche''' and then simply '''Deloitte.''' with a round green dot following the name. In 2003 the rebranding campaign was commissioned by Bill Parrett, the then CEO of DTT, and led by Jerry Lehman, the global Clients and Markets leader.<ref>[http://www.accountancyage.com/accountancyage/news/2200392/ernst-young-launches-rebrand Ernst & Young launches rebrand plan (refers to Deloitte rebranding in 2003)]</ref>
==Services==
'''Deloitte & Touche LLP''' in the UK offers all four of the following service lines, all operating within a single company sometimes with professionals from different areas working alongside each other:<ref>[http://www.deloitte.com/dtt/section_home/0,1041,sid%253D2827,00.html Deloitte: Services offered]</ref>
* Audit
* Tax
* Consulting
* Financial Advisory (or Corporate Finance)
In comparison, '''Deloitte LLP''' (the US member firm) is composed of several function-specific subsidiaries, each of which is a separate legal entity but a wholly owned subsidiary. Some countries' member firms are organized differently.
*'''Deloitte Consulting LLP''': Provides [[consulting]] services to various clients in Financial Services, Consumer & Industrial Products, Health Care & Life Sciences, Public Sector, and other industries and subcategories. The specific consulting capabilities are organized into Service Areas: Enterprise Applications, Technology Integration, Strategy & Operations, Human Capital, and Extended Business Services (XBS), which are further broken down into relevant subcategories. They concentrate on providing more solid and defined business processes for companies which previously lacked them.<ref>[http://www.deloitte.com/dtt/section_node/0,1042,sid%253D26551,00.html Deloitte: Consulting services]</ref>
*'''Deloitte & Touche LLP''': This function is known internally as Audit & Enterprise Risk Services, and provides the firm's traditional accounting and audit services, as well as offerings in risk management, security, data quality & integrity and IT control assurance.<ref>[http://www.deloitte.co.uk/ers Assurance & Advisory services]</ref>
*'''Deloitte Tax LLP''': This function provides traditional tax advisory services to clients, as well as offerings in tax systems and advisory of tax implications on various parts of the business: mergers & acquisitions, ERP package implementation, etc.<ref>[http://www.deloitte.com/dtt/section_node/0,1042,sid%253D2152,00.html Deloitte: Tax services]</ref>
*'''Deloitte Financial Advisory Services LLP''': This function provides financial advisory services to clients, including dispute, forensics, and valuation.<ref>[http://www.deloitte.com/dtt/section_node/0,1042,sid%253D2007,00.html Deloitte: Financial Advisory services]</ref>
*'''Deloitte Services LP''': While not a client-facing subsidiary, this vital function comprises people that operate the firm itself, such as finance, human resources, marketing, Strategy, Research & Innovation (SR&I), mail and printing services, technology support, and administrative assistants.
==Staff==
The firm is rated by Fortune as one of the 100 best companies to work for.<ref>[http://money.cnn.com/magazines/fortune/bestcompanies/2007/snapshots/76.html Fortune: 100 best companies to work for]</ref>
In 2007, Deloitte was rated the number one place to launch your career by Business Week.<ref>[http://www.businessweek.com/careers/bplc/2007/1.htm Businessweek]</ref>
==Criticisms==
Disputes involving Deloitte include:
*[[Adelphia|Adelphia Communications Corporation]] - The [[Securities and Exchange Commission]] announced on April 26, 2005 that Deloitte had agreed to pay $50 million to settle charges relating to Adelphia's 2000 financial statements<ref>[http://www.financegates.com/news/business_news/2005-04-26/deloitte_04262005.html Deloitte settles in Adelphia scandal]</ref>
*[[Guangdong|Guangdong Kelon Electrical Holdings]] - Investors have claimed that there was a failure to alert them to the company's poor financial position<ref>[http://www.chinadaily.com.cn/bizchina/2006-03/31/content_556998.htm Deloitte faces double trouble in China]</ref>
*[[Haringey Council|Haringey Council Refresh Project]] - A local government IT project in the UK, in which costs rose from £9m to £24.6m. Deloitte were consultants on the project, despite being employed at the same time as the council's auditors.<ref>[http://www.computerweekly.com/Articles/2006/02/21/214275/how-a-london-councils-visionary-it-plan-became-a-project-management.htm How a London council's visionary IT plan became a project management nightmare]</ref>
*Irish [[Health Service Executive]] - Poor consulting support of health accounts system software in 2005 led to major cost overruns and the Irish Health Service Executive pulling the plug on the computer system entirely after substantial cash outlays<ref>[http://www.e-health-insider.com/news/item.cfm?ID=1470 E-Health Insider :: Ireland suspends two national health IT projects<!-- Bot generated title -->]</ref>
*[[Los Angeles Unified School District|Los Angeles Unified School District ('LAUSD')]] - The firm sold the system to LAUSD for US$95m and because of faults in the system the schoolteachers were underpaid, overpaid or not paid at all.<ref>[http://media.www.dailytrojan.com/media/storage/paper679/news/2007/09/27/News/Lausd.Teachers.Start.Boycott-2995901.shtml LAUSD teachers start boycott]</ref> As at 31 December 2007 LAUSD had incurred a total of US$140m in payments to Deloitte to get the system working properly.<ref>[http://blogs.zdnet.com/projectfailures/?p=431 Los Angeles school district SAP implementation still broken]</ref> However in January 2008 there was some evidence that that the payroll issues had started to stabilize with errors below 1% according to LAUSD's chief operating officer.<ref>[http://blogs.zdnet.com/projectfailures/?p=576&tag=rbxccnbzd1 Update: LAUSD payroll problems stabilized]</ref>
==Notable current and former employees==
===Business===
*[[R. Anthony Benten]] - Treasurer of [[The New York Times Company]] (2003–present)
*[[J. Michael Cook]], former CEO of Deloitte & Touche
*[[Fred Goodwin]] - CEO of the [[Royal Bank of Scotland]] (2001–present)
*[[Sam Morgan (entrepreneur)|Sam Morgan]] - Founder of [[TradeMe]]
*[[Eugene Shvidler]] - President of [[Gazprom Neft|Sibneft]] (1998–2005)
*[[Orin C. Smith]] - CEO of [[Starbucks]] (2000–05)
*[[James Sun]] - Contestant on ''[[The Apprentice (TV series)|The Apprentice]]'' and CEO of Zoodango.com
===Politics and public service===
*[[Eric Forth]] - Member of the [[British Parliament]] (1983–2006)
*[[Vito Fossella]] - Member of the [[United States Congress|U.S. House of Representatives]] (1997–present)
*[[Bill Owens]] - 40th [[Governor of Colorado|Governor]] of [[Colorado]] (1999–2007)
*[[Pierre Pettigrew]] - [[Canada|Canadian]] [[Minister of Foreign Affairs (Canada)|Minister of Foreign Affairs]] (2004–06)
*[[Tom Ridge]] - 45th [[Governor]] of [[Pennsylvania]] (1996–2001), - Assistant to the President for Homeland Security (2003-2005), - US Secretary of [[Homeland Security]] (2003-2005)
*[[Nicol Stephen]] - [[Deputy First Minister of Scotland|Deputy First Minister]] of [[Scotland]] (2005–2007)
*[[Bola Tinubu]] - [[List of Governors of Lagos State|Governor]] of [[Lagos State]] (1999–2007)
*[[Wayne Goss]] - [[Premiers of Queensland|Premier]] of the State of [[Queensland]], [[Australia]] (1989–1996)
*[[Peter Cosgrove]] - [[Chief of the Defence Force (Australia)|Chief of the Australian Defence Force]] (2002-2005)
===Other===
*[[Keith Bradshaw]] - Cricketer
*[[Dave Karnes]] - U.S. Marine
*[[Kevin O'Connor (Reality TV)|Kevin O'Connor]] - Contestant on ''[[The Amazing Race]]''
==Clients==
Major clients include (note that not all of these are audit clients):
*'''Aerospace:''' [[Alliant Techsystems]], [[Boeing]], [[Northrop Grumman]], [[Lockheed Martin]], [[Raytheon]]
*'''Auction:''' [[Sotheby's]]
*'''Banks:''' [[Arab Bank]], [[Kookmin Bank|KB]], [[The World Bank]], [[Rosbank]], [[Royal Bank of Canada]], [[Washington Mutual]], [[Royal Bank of Scotland]], [[BNP Paribas]], [[National Bank of Canada]]
*'''Chemicals:''' [[Dow Chemical Company]], [[Huntsman Corporation]], [[Solutia]]
*'''Conglomerate:''' [[Tyco International]]
*'''Energy and Electricity:''' [[American Electric Power]], [[Keyspan Energy]], [[Southern Company]], [[Xcel Energy]], [[General Cable Corporation]], [[Dominion Resources]], [[AES Corporation]]
*'''Financial Services:''' [[American Express]], [[VISA]], [[Charles Schwab Corp.]], [[E*TRADE|E*TRADE Group Inc.]], [[Fannie Mae]], [[Fidelity Investments]], [[Lehman Brothers]], [[Lloyds TSB]], [[MasterCard]], [[Merrill Lynch]], [[Morgan Stanley]], [[Sky Financial Group Inc.]], [[MoneyGram]], [[Radian Group]], [[MICEX]], [[Berkshire Hathaway]], [[Countrywide Financial]], [[Cantor Fitzgerald L.P.]]
*'''Healthcare:''' [[Abbott Laboratories]], [[HealthPartners]], [[McKesson|McKesson Corporation]], [[UnitedHealth Group]], [[Wellcare Healthplans Inc.]], [[Health Net, Inc.]], [[Servicio Occidental de Salud]], [[Mutual of Omaha]]
*'''Industrial Good & Products:''' [[Blackstone Group]], [[Deere & Company]], [[Dura Automotive Systems]], [[Fiat Group]] [[General Motors]], [[Hyundai Motors]], [[Nissan]], [[Tata Group]], [[Vulcan Materials Company]], [[United Parcel Service|UPS]]
*'''Industrial Metals:''' [[Mittal Steel]], [[Magnitogorsk Iron and Steel Works|MMK (Russia)]], [[Norilsk Nickel]], [[Gerdau]]
*'''Insurance:''' [[Allstate]], [[Berkshire Hathaway]], [[Metlife]], [[Norwich Union]]
*'''Media:''' [[Bloomberg L.P.]], [[Middle East Broadcasting Center]], [[Comcast]]
*'''Religion:''' [[The Church of Jesus Christ of Latter Day Saints]]
*'''Retail & Consumer Products:''' [[Ahold]], [[Best Buy]], [[Gap (clothing)|Gap]], [[Heinz]], [[Hyatt]], [[Levi Strauss & Co.]], [[Liz Claiborne Inc.]], [[L'Oreal]], [[MGM Mirage]], [[Nordstrom]], [[Procter and Gamble]], [[Safeway Inc.]], [[Starbucks]], [[Walgreens]], [[Pep Boys]]
*'''Pharmaceuticals & Biotechnology:''' [[Bristol-Myers Squibb]], [[Monsanto]], [[Rite Aid|Rite Aid Corporation]], [[Schering-Plough]], [[Hikma]], [[Johnson & Johnson]]
*'''Public Sector:''' [[Texas|State of Texas]], [[United States Department of Defense]], [[United States Department of Justice]], [[United States Department of Homeland Security]], [[United States Intelligence Community]], [[European Institutions]]
*'''Publishing:''' [[Cox Enterprises]]
*'''Sports:''' [[Major League Baseball]], [[Comcast-Spectacor]]
*'''Technology:''' [[Dell Inc.]], [[Gateway, Inc.]], [[Microsoft]], [[Motorola]], [[Pentair]], [[Intel]], [[Telvent]]
*'''Telecommunications:''' [[AT&T Mobility]], [[British Telecom|BT]], [[Comcast]], [[MTS]], [[Sprint Nextel|Sprint Nextel Corporation]], [[Umniah]], [[Vodafone]], [[WPP Group|WPP]]
*'''Transportation:''' [[Port Authority of New York and New Jersey]]
*'''Travel:''' [[ATA Airlines]], [[Avianca]], [[Continental Airlines]], [[Midwest Airlines]], [[Northwest Airlines]], [[US Airways]], [[United Airlines]]/[[UAL Corporation]]
==See also==
*[[Deloitte Fast 500]]
*[[Deloitte Football Money League]]
*[[Sarbanes-Oxley Act]]
*[[Tax advisor]]
==References==
{{reflist|3}}
==External links==
*[http://www.deloitte.com/global Deloitte] - Official Deloitte Website
*[https://prehire.deloitte.com/ Official Deloitte Prehire website]
*[http://www.greendotlife.com/ Green Dot Life] - Unofficial Message board for Deloitte employees
*[http://biz.yahoo.com/ic/40/40120.html Yahoo! — Deloitte Touche Tohmatsu Company Profile]
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