KPMG

KPMG
source
Name	KPMG
Type	Limited liability partnership
Industry	Professional services
Founded	0 1987 (merger)
Founder	James Marwick, Roger Mitchell, William Barclay Peat, Piet Klijnveld, Jacob Kraayenhof, Reinhard Goerdeler
Hq location	Amstelveen, Netherlands
Key people	Bill Thomas (Global Chairman & CEO)

KPMG. KPMG is one of the world's leading professional services networks and a member of the Big Four accounting firms, alongside Deloitte, Ernst & Young, and PricewaterhouseCoopers. The organization provides audit, tax, and advisory services to a vast array of clients, including multinational corporations, government agencies, and non-profit organizations. With a presence in over 140 countries, it operates as a global network of independent member firms under the KPMG International cooperative.

History

The firm's origins trace back to several pioneering accountancy practices established in the late 19th and early 20th centuries, including those founded by William Barclay Peat in London and Piet Klijnveld in Amsterdam. A significant early merger in 1911 created Peat Marwick Mitchell & Co. in the United States. The modern entity was formed in 1987 through the merger of Peat Marwick International and Klynveld Main Goerdeler (KMG), a union that combined strong European and Anglo-American practices. This strategic consolidation during a period of globalizing markets positioned the firm to compete effectively with other major networks. Throughout the 1990s and 2000s, KPMG expanded its advisory capabilities significantly, notably acquiring the consulting arm of Andersen in many countries following the Enron scandal and the dissolution of Arthur Andersen.

Services

KPMG's service offerings are organized into three primary functional lines. Its assurance practice provides financial audit services and related regulatory compliance reporting for public companies and private entities. The tax practice assists clients with complex corporate tax planning, international tax law, transfer pricing, and indirect tax matters across numerous jurisdictions. The advisory division offers management and risk consulting, encompassing areas such as digital transformation, cybersecurity, forensic accounting, deal advisory, and management consulting. These services are delivered by multidisciplinary teams often comprising specialists in data analytics, artificial intelligence, and specific industry sectors like financial services, healthcare, and energy.

Global structure and operations

KPMG operates as a Swiss association, KPMG International, which coordinates the global strategy and standards for its network of independent member firms. Each member firm, such as KPMG LLP in the United States and KPMG UK in the United Kingdom, is a legally separate entity and is subject to the regulations of its home country, such as the Public Company Accounting Oversight Board (PCAOB) in the U.S. or the Financial Reporting Council (FRC) in the U.K. The network is governed by a Global Board and led by a Global Chairman and Chief Executive Officer, with major operational decisions often made in consultation with leaders of the largest national practices. Key innovation and research initiatives are frequently centralized in global centers, such as its Ignition Centers and collaborations with institutions like the Massachusetts Institute of Technology.

Notable alumni and personnel

Many individuals who began their careers at the firm have achieved prominence in business and public service. Notable alumni include former Prime Minister of Malaysia Najib Razak, former Governor of the Bank of England Eddie George, and former CEO of IBM Samuel J. Palmisano. In the realm of sports administration, Premier League chief executive Richard Masters is also a former employee. Within the accounting profession, figures like Michael Izza, CEO of the Institute of Chartered Accountants in England and Wales, and Robert Herz, former chairman of the Financial Accounting Standards Board, spent significant portions of their careers at KPMG.

Controversies and legal issues

The firm has been involved in several high-profile regulatory and legal disputes. It faced significant scrutiny for its role as auditor of failed companies, including the United Kingdom's Carillion and the United States' MF Global. In 2005, KPMG settled a major case with the U.S. Department of Justice regarding the marketing of abusive tax shelters. More recently, it paid a substantial penalty to the Securities and Exchange Commission in 2019 for improper professional conduct and independence violations. In South Africa, the firm's work for the controversial Gupta family became a focal point of the Judicial Commission of Inquiry into State Capture. These incidents have led to increased oversight from regulators like the PCAOB and calls for reform within the audit profession.

Category:Big Four accounting firms Category:Professional services networks Category:Companies based in Amsterdam