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.