KPMG Full Form Name
Full
Form of KPMG :
Klynveld
Peat Marwick Goerdeler
KPMG
Full Form represents Klynveld, Peat
Marwick, and Geordeler. KPMG is a global network of companies that provide
tax, audit, and advisory services. The names that are represented by KPMG are
the 4 people who connected their individual accounting firms to form this giant
global organization. Today, KMPG has grown to become globally popular and
operates in over 155 countries.
KPMG
provides consistent multidisciplinary services and helps organizations all over
the world with regulations, schemes, and financial statements. The tax services
take care of both businesses as well as personal concerns on taxation. KMPG
also offers advisory services to render help to several organizations and
business start-ups in the reconstruction of business, technological
innovations, transactions, and handling risky situations. Currently, KMPG has a
network around the globe and caters its unique services to almost every
industry.
KPMG
Full Form – Additional Information
All
big companies with large turnovers need their accounts to be audited and
maintained for tax purpose. It order to guide the companies to save money on
taxes and invest wisely there are chartered accountants and auditors. Major
multinationals who have their presence globally have turnovers and profits in
millions. Thus, it is essential to appoint a worthy accounting firm that can
help them save maximum on taxes and other outgoings. There are 4 big auditors –
PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte and Klynveld
Peat Marwick Goerdeler (KPMG).
KPMG
– THE PEOPLE BEHIND THE COMPANY
K is for Klynveld, one of the partners in the firm. Piet
Klynveld started his small accountancy firm in 1917 in Amsterdam, Holland. It
was known as Klynveld Kraayenhof & Co.
P is Peat. William Barclay Peat opened an accounting business
in London in 1870 under the name of William Barclay Peat & Co. Accounting
and money management were in his blood as he was the son of James Peat and
Margaret Barclay, from the family of bankers who started the Barclays Bank in
England that was considered as the largest bank at that time. Sir William
Peat’s great-grandson, Michael Peat, is the trusted aide of Prince Charles and
a Treasurer at Buckingham Palace.
M
denotes Marwick. In the year 1897 in
the city of New York, James Marwick opened an accounting firm named Marwick,
Mitchell & Co in collaboration with Roger Mitchell. James Marwick was a
qualified Chartered Accountant. However, he chose to sail to first Australia
and the Canada to hunt for good business opportunities. He found a conducive
environment in North America, where he came across his schoolmate Roger
Mitchell in New York and then on the two decided to start the accounting firm
Marwick, Mitchell & Co. Later, in 1911, James and Roger teamed up with Sir
William Barclay Peat and soon their company was known as Marwick, Mitchell,
Peat and Company. After 8 years they broke the partnership and Marwick retired
in 1917. Roger Mitchell became the senior partner till 1925. This same year he
reunited with William Peat and the firm was renamed Peat, Marwick &
Mitchell.
G
stands for Goerdeler. Reinhard
Goerdeler was the Chairman of Klynveld Main Goerdeler (KMG) company for several
years. He also had the distinction of being the first President of the IFA or
International Federation of Accountants. In 1987, he brought about the
mega-merger of KMG and Peat Marwick International and thus the present KPMG
came into existence.
HOW
WAS THE COMPANY KPMG FORMED?
William
Barclay Peat & Co merged with Marwick, Mitchell & Co in the year 1911
to form what was recognized as a worldwide network of consulting and accounting
firms under the name of Peat Marwick International (PMI). In 1979, Piet
Klynveld decided to team up Klynveld Kraayenhof & Co (Netherlands). with
international professional services company McLintock Main Lafrentz (UK / USA)
and Deutsche Treuhand-Gesellschaft (Germany) and formed Klynveld Main Goerdeler
(KMG). The aim was to build a company with a strong foothold in Europe and
America.
1987
saw the merger of PMI and KMG with the efforts and initiative of Richard
Goerdeler. Since then, all the member companies of these two firms adopted the
common name of KPMG – Klynveld Peat Marwick Goerdeler. Today, this company has
a worldwide presence in the field of accounting, auditing, taxation, investment
consultancy, etc. The company has its headquarters in Amsterdam and offices all
across the globe. KPMG has not only established its services in Europe but also
in the USA and other parts of the world.
SERVICES
RENDERED BY KPMG
KPMG
is a well-known name as auditors and as mentioned earlier, they have the
distinction of being in the group of BIG 4. These four companies (Deloitte,
KPMG, Ernst & Young and PricewaterhouseCoopers) are considered the best in
providing auditing and accounting services. KPMG also offers consultation for
taxation and investments. They have a legal advisory division as well.
- Auditing: Big companies have a sizeable turnover that needs
proper accounting and maintenance and thus require the services of good
auditors. Audited accounts give details of the company’s business in terms
of their investments, profits, losses and market value. This is necessary
to be put forth at the annual general meeting in front of the investors
and stockholders to give them assurance about the stability and
credibility of the company.
- Tax: When there are earnings, there are taxes to be paid.
Each country and the state has different tax laws and the accounting firms
help steer through the taxation process as they are well versed with the
taxation limits, categories, discounts and tax benefits, etc. Every
individual, as well as the business house, is expected to abide by the tax
laws and pay different types taxes like income, sales, professional,
service tax etc. It is the duty of the accountants to see that their
clients pay minimum taxes by taking up tax rebate investment options.
- Advisory: KPMG offers consultation in management with respect to
customer and operations, financial management, risk consultancy and so on.
Under customer and operations, KPMG guides the clients in efficiency in
product design, cost reduction techniques, globalization, and establishing
good service relation with customers, etc. They also have a consultation
for IT security and have an alliance with Microsoft to offer cloud data
services.
- Business guidance: There are many talented minds that crave to become
good entrepreneurs. However, they fail to have the know-how and nuances to
establish a profitable business. This is where KPMG steps in, guiding the
person to set up a business and also help him grow it in a right manner.
Whether it is a proprietary venture or running a family business, KPMG has
solutions for all. Besides setting up and growing the business sometimes
there may be a need to diversify for better prospects. KPMG helps to find
the right options.
CAREER
AT KPMG
KPMG
has been nominated many times for the best place to work for. They have
dedicated staff that has been with the company for even more than 20 years.
There are many career opportunities as well as internship programs at KPMG. The
company gives ample scope to deserving candidates to scale their full potential
and guides them in their chosen field of finance. After graduation if you wish
to make a career in accounting and auditing, then KPMG helps you understand the
work better and introduces you to client dealings.
KPMG
offers global exposure and internships are placed all around the world that
gives the student an opportunity to have a wider experience about different
industries. The US branch of the company was voted as one of the top 10
companies favorable for working mothers. In the year 2012, it was estimated
that around 9000 employees worked at their mainland China and Hong Kong offices
and 11000 worked at the UK branch.
CONTROVERSIES
SURROUNDING KPMG
Every
successful company has to face some public crisis and legal problems. The same
applied to KPMG when some of their clients filed lawsuits against them on
various charges. There was an accusation of helping some wealthy clients to
avoid taxes to the tune of $2.5 billion and they had to pay the penalty in a
court of $456 million. In the year 2006, Fannie Mae sued them for creating
false statements of accounts.
In
2007, the German KPMG had been questioned about bribery case related to Siemens
company and finally Siemens changed the auditors in favor of Ernst & Young.
There are some more cases that put KPMG in legal trouble from time to time. All
said and done, every business entity has its positive and negative phases. Even
though KPMG has been embroiled on many occasions, they still hold their spot as
one of the top accounting firms in the world.