KPMG
75960
225814588
2008-07-15T15:08:49Z
Jhawkinson
3664026
/* History */ name chronology: KPMG -> KPMG Peat Marwick McClintock -> KPMG Peat Marwick -> KPMG
{{Infobox_Company |
company_name = KPMG|
company_logo = [[Image:KPMG.svg|200px|KPMG Logo]] |
company_type = [[Cooperative|Swiss Cooperative]]|
foundation = [[1987]]; merger of Peat Marwick International and Klynveld Main Goerdeler|
location = [[Image:Flag of the Netherlands.svg|20px]] [[Amsterdam]], [[Netherlands]]<br />[[Image:Flag of the United States.svg|20px]] [[New York City]], [[New York|NY]], [[United States|U.S.]]|
key_people = Tim Flynn <small>([[Chairman (official)|Chairman]] and [[Chief executive officer|CEO]])</small>
John B. Harrison, Chairman KPMG Asia Pacific Region
Ben van der Veer, Chairman KPMG Europe, Middle East and Africa Region|
num_employees = 123,000+ |
industry = [[Professional services]] |
services = [[Financial audit|Audit]]<br />[[Tax]]<br />[[Management consulting|Advisory]]<br /> |
revenue = {{profit}}$19.8 billion [[United States dollar|USD]] ([[2007]]) |
slogan = think big |
homepage = [http://www.kpmg.com/ www.kpmg.com]
}}
'''KPMG''' is one of the largest [[professional services]] firms in the world. KPMG employs over 123,000 people<ref name="results">[http://www.kpmg.com/Press/11.28.2007.htm KPMG revenues grow 17.4%]</ref> in a global network of member firms spanning over 145 countries.<ref>[http://www.kpmg.com/About/ About KPMG]</ref> Composite revenues of KPMG member firms in 2007 were $19.8 billion USD (17.4% growth from 2006).<ref name="results"/> KPMG has three lines of services: [[Financial audit|audit]] services, [[tax]] services, and [[Management consulting|advisory]] services.
KPMG is a [[Big Four auditors|Big Four auditor]], alongside [[PricewaterhouseCoopers]], [[Ernst & Young]] and [[Deloitte Touche Tohmatsu]].
==Name==
The name of the firm, KPMG, is not actually an initialism. However, the roots of the name 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 Klynveld]] in [[Amsterdam]] in [[1917]].
*'''P''' is for '''Peat''', originating from the accounting firm William Barclay Peat & Co., which was founded by [[William Barclay Peat]] in [[London]] in [[1870]].
*'''M''' stands for '''Marwick'''. [[James Marwick]] founded the accounting firm Marwick, Mitchell & Co. together with [[Roger Mitchell]] in [[New York City]] in [[1897]].
*'''G''' is for '''Goerdeler'''. Dr. [[Reinhard Goerdeler]] was 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.
[[Image:345_park1.jpg|thumb|Headquarters of KPMG LLP, the United States-based member firm of KPMG International, at 345 Park Avenue, [[New York City]], [[New York]].]]
==History==
*In [[1870]], [[William Barclay Peat]] formed an [[accountancy|accounting]] firm in [[London]]<ref name="history">[http://www.kpmg.co.uk/about/history/index.cfm KPMG - History]</ref>
*In [[1877]] accountancy firm Thomson McLintock opens in [[Glasgow]]<ref name="history"/>
*In [[1911]], William Barclay Peat & Co. and Marwick Mitchell & Co. merged to form Peat Marwick Mitchell & Co, later known as Peat Marwick.
*In [[1979]], Thomson McLintock forms KMG (Klynveld Main Goerdeler) a grouping of independent national practices to create a strong European-based international firm.<ref name="history"/>
*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.<ref name="history"/>
* 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 & Young]] announced that they were to merge, in a manoeuvre largely seen as a spoiling tactic over the merger of [[Price Waterhouse]] and [[Coopers & Lybrand]]. However that merger, to form [[PricewaterhouseCoopers]], was granted regulatory approval while the KPMG/Ernst & Young tie-up was later abandoned.<ref>[http://findarticles.com/p/articles/mi_m0EIN/is_1997_Oct_20/ai_19892580 Ernst & Young, KPMG merger to create US juggernaut]</ref>
*In [[2001]], KPMG divested its U.S. consulting firm through an [[IPO]] of [[KPMG Consulting Inc]], which is now called [[BearingPoint|BearingPoint, Inc.]].<ref>[http://www.itworld.com/Man/3870/021002bearingpoint/ KPMG Consulting becomes Bearing Point]</ref>
*In [[2002]], the UK and Dutch consulting arms were sold to [[Atos Origin]].<ref>[http://www.itworld.com/Man/3870/020605atosoriginkpmg/ French Atos buys two KPMG consulting units]</ref>
*In [[2003]], KPMG agreed to pay $125 million to settle a lawsuit stemming from the firm's audits of the drug chain [[Rite Aid]].<ref>[http://goliath.ecnext.com/coms2/gi_0198-120108/KPMG-agrees-to-settle-Rite.html KPMG agrees to settle Rite Aid suit.]</ref>
*In [[2003]], KPMG divested itself of its legal arm, Klegal.<ref>[http://www.newstatesman.com/pdf/lawsupp2004.pdf ''Are they off their trollies?'' New Statesman article]</ref>
*In [[2003]], KPMG LLP sold its Dispute Advisory Services to FTI Consulting. <ref>[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]</ref>
*In [[2004]], KPMG agreed to pay $115 million to settle lawsuits stemming from the collapse of software company [[Lernout & Hauspie]] Speech Products NV.<ref>[http://www.cfo.com/article.cfm/3282683 KPMG Pays $115 Million to Settle Suit]</ref>
*In [[2005]], the U.S. member firm admitted criminal wrongdoing in a multi-billion dollar [[KPMG tax shelter fraud|tax shelter fraud]].<ref>[http://www.accountancyage.com/accountancyage/news/2201585/kpmg-tax-shelter-case-postponed KPMG tax shelter case postponed]</ref>
*In [[2006]], [[Fannie Mae]] sued KPMG for malpractice for approving years of erroneous financial statements.<ref>[http://www.washingtonpost.com/wp-dyn/content/article/2006/12/12/AR2006121201386.html Fannie Sues KPMG for Approving Bad Numbers]</ref>
*In February [[2007]], KPMG Germany investigated for ignoring questionable payments in [[Siemens]] bribery case.<ref>[http://online.wsj.com/article/SB117219374546016790-search.html?KEYWORDS=kpmg&COLLECTION=wsjie/6month KPMG Germany's Failure to Spot Siemens Problems Raises Questions]</ref>
*In October [[2007]], KPMG's member firms in the [[UK]], [[Germany]], [[Switzerland]] and [[Liechtenstein]] merged to form KPMG Europe LLP. They now have joint Chairmen, John Griffith-Jones and Ralf Nonnenmacher.<ref name="history"/>
*In March [[2008]], KPMG accused of enabling “improper and imprudent practices” at [[New Century Financial]], a failed mortgage company.<ref>[http://www.nytimes.com/2008/03/26/business/26cnd-account.html?_r=1&hp Report Assails Auditor for Work at Failed Home Lender]</ref>
*In March [[2008]], KPMG agreed to pay $80 million to settle suits from [[Xerox]] shareholders over manipulated earnings reports.<ref>[http://www.webcpa.com/article.cfm?articleid=27255 KPMG and Xerox Settle Securities Lawsuit]</ref>
==Legal structure and executives==
Each national KPMG firm is an independent legal entity and is a member of KPMG International, a Swiss [[cooperative]] registered in the Swiss [[Canton of Zug]]. KPMG International changed its legal structure from a [[Swiss Verein]] to a [[cooperative]] under Swiss law in 2003.<ref>[http://hrazg.ch/ Handelsregister des Kantons Zug] (Registration Number CH-020.6.900.276-5) </ref>
KPMG International is led by:
* Timothy P. Flynn, 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;
* Timothy P. Flynn, Chairman-Americas Region, Chairman of KPMG in the United States;
* Ben van der Veer, Chairman-Europe, Middle East and Africa Region, Chairman of KPMG in the Netherlands.
[[Image:Kpmgdallas.jpg|thumb| The 34 story KPMG Center in [[Dallas]], [[Texas]].]]
==Services==
'''KPMG''' offers the following services:<ref>[http://kpmg.com/Services/ KPMG Global Services]</ref>
* '''Audit:''' Statutory Audit and [[Financial Audit|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
*# [[Corporate Finance]]
*# [[Financial risk management|Financial Risk Management Services]]
*# Forensics
*# [[Internal Audit|Internal Audit Services]].
*# [[Information Technology Consulting|IT Advisory]]
*# Restructuring
*# Transaction Services ([[Mergers & Acquisitions|M&A]])
==Audit clients==
KPMG member firms serve as the independent auditors for a large number of major corporations:
*'''Consulting:''' [[Accenture]], [[FTI Consulting]], [[Gartner]], [[Shaw Group]]
*'''Construction and Real Estate''' [[AMEC]], [[Carillion]], [[CB Richard Ellis]], [[Kellogg, Brown & Root|KBR]], [[Lend Lease Corporation]], [[Tishman Speyer]], [[Jones Lang LaSalle]]
*'''Energy:''' [[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]], [[European Climate Exchange|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|Munich Re Group]], [[Nationwide Mutual Insurance Company|Nationwide Financial]], [[Northern Trust]], [[Old Mutual]], [[Oppenheimer Funds]], [[Prudential|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]]
*'''Healthcare:''' [[Ansell]], [[Caremark]], [[Kaiser Foundation]], [[Res-Care]], [[Providence Health System]], [[Swedish Health Services]]
*'''Hotels:''' [[Hyatt Corporation]]
*'''Industrial Products:''' [[Asahi Glass Co.]], [[BASF]], [[BMHC]], [[BMW]], [[Cemex]], [[DaimlerChrysler]], [[General Electric]], [[Honda]], [[Jabil Circuit]], [[Komatsu Limited]], [[Matsushita Electric Industrial Co.]], [[Mitsubishi Electric]], [[Navistar International]], [[Siemens AG]], [[Sumitomo Group]], [[Weyerhaeuser]]
*'''Media:''' [[BBC]], [[Bertelsmann]], [[ITV]], [[Metro International]], [[National Geographic Society]], [[NBC Universal]], [[R.H. Donnelley]], [[RealNetworks]], [[Sega Corporation|Sega]], [[Sony BMG Music Entertainment|Sony BMG]], [[Sun-Times Media Group]], [[Wolters Kluwer]], [[Virgin Group]]
*'''Mining:''' [[BHP Billiton]], [[Rusal]]
*'''Pharmaceutical:''' [[Pfizer]]
*'''Retail & Consumer Products:''' [[Alberto-Culver]], [[Arla]], [[Asahi Breweries]], [[Burger King]], [[Cargill]], [[Carlsberg]], [[Carrefour]], [[Circuit City]], [[ConAgra Foods]], [[Costco]], [[CVS Corporation|CVS Pharmacy]], [[Darden Restaurants]], [[Diageo]], [[Federated Department Stores]], [[Jack in the Box]], [[J.C. Penney]], [[General Mills]], [[Hasbro]], [[Heineken Brewery|Heineken]], [[Hooters of America]], [[Macy's]], [[Metro AG]], [[Mohawk Industries]], [[Morton's of Chicago]], [[Nestlé]], [[Netflix]], [[Office Max]], [[PepsiCo, Inc.|PepsiCo]], [[Publix|Publix Super Markets]], [[R.J. Reynolds Tobacco]], [[Ruth's Chris Steakhouse]], [[Shiseido]], [[Supervalu (United States)|Supervalu]], [[The Hershey Company]], [[Home Depot]], [[Maple Leaf Foods]], [[Winn-Dixie (supermarket)|Winn-Dixie]], [[Yum! Brands]]
*'''Technology:''' [[Adobe Systems]], [[Apple Computer]], [[Applied Materials]], [[Beckman Coulter]], [[Boston Scientific]], [[Zeiss|Carl Zeiss AG]], [[CA Inc.]], [[Cerner]], [[CNET Networks]], [[Dolby Laboratories]], [[Electronic Arts]], [[Electronic Data Systems|EDS]], [[Ericsson]], [[LG Group]], [[Motorola]], [[National Semiconductor]], [[Navteq]], [[Nortel]], [[Philips]], [[Samsung]], [[Sanmina-SCI]], [[Siemens AG|Siemens]], [[Symantec]], [[TDK Corporation]], [[TiVO]], [[WebEx]], [[VeriSign]]
*'''Telecoms:''' [[Cable & Wireless]], [[CenturyTel]], [[China Mobile]], [[Citizens Communications]], [[Embarq]], [[PCCW]], [[Rogers Communications]], [[Sprint Nextel Corporation|SprintNextel]], [[Qwest]], [[Cablevision]]
*'''Travel and Transportation:''' [[Air France]], [[Alaska Airlines]], [[Amtrak]], [[Asiana Airlines]], [[Brink's]], [[Cathay Pacific]], [[China Southern Airlines]], [[Chrysler LLC]], [[easyJet]], [[English, Welsh & Scottish Railway|EWS]], [[EVA Air]], [[Frontier Airlines]], [[KLM]], [[MTR Corporation]], [[Norfolk Southern Railway]], [[Ryanair]], [[US Airways]], [[WestJet]], [[Qantas]]
==Tax shelter fraud==
{{main|KPMG tax shelter fraud}}
In early 2005, the United States member firm, KPMG LLP, was accused by the [[United States Department of Justice]] of [[KPMG tax shelter fraud|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.<ref>[http://www.washingtonpost.com/wp-dyn/content/article/2007/01/03/AR2007010301883.html Charge Against KPMG Dropped] Carrie Johnson, January 4, 2007, Washington Post</ref> 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.<ref> [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</ref>
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.
==Staff==
KPMG is one of the top 10 companies for working mothers.<ref>[http://www.workingmother.com/web?service=direct/1/ViewArticlePage/dlinkFullFeaturedArticle&sp=601&sp=94 Working Mother]</ref> It is also ranked No. 71 on Fortune Magazine's list of 100 Best Companies to Work For, voted for by employees.<ref>[http://money.cnn.com/magazines/fortune/bestcompanies/2008/full_list/ Fortune Magazine's 100 Best Companies to Work For]</ref>
KPMG ranks No. 5 out of 125 among companies with the best training programs according to "Training Magazine".<ref>[http://www.kpmgcareers.com/whoweare/training.pdf Extract from Training Magazine]</ref>
KPMG was the preferred employer among the Big Four accounting firms according to College Grad.com.<ref>[http://www.collegegrad.com/press/big-four.shtml College Grad.com]</ref> It was also ranked No.11 on the list of "50 Best Places to Launch a Career".<ref>[http://www.businessweek.com/careers/content/sep2007/ca20070913_595536.htm?chan=careers_special+report+--+best+places+to+launch+a+career_best+places+to+launch+a+career Best Places to launch a career]</ref>
Also, in early 2008, KPMG in the UK won the Times 20 Best Big Companies to work for. This was the forth consecutive appearance in the top three for KPMG which has been named Best Big Company to work for 3 times in the last 4 years.
==Corporate Anthem and Internet Cliche==
The firm has also achieved widespread notoriety for its corporate anthem, entitled "Our Vision of Global Strategy". The song has enjoyed cult status online.<ref>[http://resources.zdnet.co.uk/articles/features/0,1000002000,2124072,00.htm IT anthems: KPMG]</ref>
==Sponsorship and Media==
In February of 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.<ref>[http://www.pgatour.com/2008/tournaments/r005/02/06/mickelson_release/index.html Mickelson signs agreement with KPMG LLP]</ref>
==Notable current and former employees==
===Business===
*[[Margaret Jackson]] - chairman of [[QANTAS]] (2000-2007)
*[[Syd Kessler]] - entrepreneur
*[[Michael O'Leary (Ryanair)|Michael O'Leary]] - CEO of [[Ryanair]] (1994-present)
*[[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 (politician)|Michael Hirst]] - Member of the [[British Parliament]] (1983-87)
*[[Edmund Ho]] - [[Chief Executive of Macau]] (1999-present)
*[[Hilbrand Nawijn]] - Dutch Minister for Integration (2002-2003)
*[[Kevin Rudd]] - [[Australian Prime Minister]] (2007-present)
*[[Rita Verdonk]] - Dutch Minister for Integration and Immigration (2003–2007)
===Other===
*[[Leslie Ferrar]] - Treasurer to [[Charles, Prince of Wales]]
*[[Amr Khaled]] - Extremely popular moderate [[Muslim]] preacher.
*[[Bruce Marshall]] - Writer
*[[Michael Peat]] - Principal Private Secretary to [[Charles, Prince of Wales]]
*[[Nate Silver]] - Managing Partner of [[Baseball Prospectus]], creator of [[PECOTA]] baseball projection system.<ref>[http://sports.espn.go.com/espn/page2/story?page=keri/070214 'Tis the season to project stats] Jonah Keri, February 14, 2007, ESPN</ref>
*[[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
==Media representation==
''[http://www.pbs.org/wgbh/pages/frontline/shows/tax/ Tax Me if You Can]'' - [[Frontline (U.S. TV series)|PBS Frontline]] documentary into corporate tax avoidance and its implications, including the role of KPMG in tax related services
==References==
{{reflist|2}}
==External links==
*[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]
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[[Category:Companies established in 1987]]
[[Category:International management consulting firms]]
[[Category:Companies without an unabbreviated name]]
[[Category:Accountancy firms]]
[[Category:Companies based in New York City]]
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