Topics: KPMG, Big Four auditors, BT Group Pages: 7 (1732 words) Published: November 1, 2007
KPMG is one of the largest professional services firms in the world. KPMG employs 113,000 people in a global network spanning 148 countries. Composite revenues of KPMG member firms in 2006 were $16.9 billion USD (7.6% growth from 2005). KPMG has three lines of services: audit services, tax services, and advisory services. KPMG is a Big Four auditor, alongside PricewaterhouseCoopers, Ernst & Young and Deloitte Touche Tohmatsu. Contents


* 1 Name
* 2 History
* 3 Legal structure and executives
* 4 Audit clients
* 5 Tax shelter fraud
* 6 Banco Nacional Scandal in Brazil
* 7 Corporate Anthem and Internet Cliche
* 8 Notable current and former employees
o 8.1 Business
o 8.2 Politics and public service
o 8.3 Other
* 9 External links

[edit] 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.

[edit] History

* In 1870, William Barclay Peat formed an accounting firm in London * In 1877 accountancy firm Thomson McLintock opens in Glasgow * In 1911, William Barclay Peat & Co. and Marwick Mitchell & Co. merged to form what would later be known as Peat Marwick International (PMI). * 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 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. * In 2001, KPMG divested its U.S. consulting firm through an IPO of KPMG Consulting Inc, which is now called BearingPoint, Inc.. A song that was produced for KPMG, "Our Vision of Global Strategy", experienced a brief period of Internet notoriety. * In 2002, the UK and Dutch consulting arms were sold to Atos Origin. * In 2003, KPMG divested itself of its legal arm, Klegal. * In 2005, the U.S. member firm admitted criminal wrongdoing in a multi-billion dollar tax shelter fraud. * In 2006, KPMG's member firms in the UK and Germany proposed to merge and form a single entity, KPMG Europe LLP. With a projected turnover for the UK and German firms in excess of £2 billion in 2009, KPMG Europe LLP will most likely be the largest fully integrated accountancy firm in Europe. * In October 2007, KPMG's member firms in the UK, Germany, Swizerland and Liechtenstein merged to form KPMG Europe LLP. They now have joint Chairmen, John Griffith-Jones and Ralf Nonnenmacher.

[edit] 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.[1]

KPMG International is led by:

* Sir Michael Rake, Chairman, Senior Partner of KPMG in the...
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