What is KPMG?
KPMG is one of the world’s leading professional services firms, known collectively as part of the “Big Four” alongside Deloitte, PricewaterhouseCoopers (PwC), and Ernst & Young (EY). The firm’s initials stand for the names of its founding members: Klynveld, Peat, Marwick, and Goerdeler. The modern form of KPMG was established in 1987 after a merger between Peat Marwick International and Klynveld Main Goerdeler.
Services Offered
- Audit: Providing rigorous examinations of financial statements to ensure accuracy and compliance with applicable standards and regulations.
- Tax: Offering strategic tax planning and compliance services to help clients navigate intricate tax laws and maximize tax efficiencies.
- Advisory: Delivering a broad range of consulting services aimed at enhancing business performance, managing risk, and meeting regulatory challenges.
Global Reach
KPMG boasts a robust global network with operations in over 150 countries and employing more than 160,000 professionals. This extensive reach allows the firm to offer comprehensive and consistent services worldwide, leveraging local expertise and global knowledge.
Examples
- Audit Services: A multinational corporation engages KPMG to conduct an annual audit of its financial statements to ensure compliance with international financial reporting standards (IFRS).
- Tax Services: A mid-sized technology firm consults KPMG to devise an efficient tax strategy and remain compliant with evolving tax regulations in multiple jurisdictions.
- Advisory Services: A financial institution partners with KPMG for risk management consulting to navigate regulatory changes and improve operational resilience.
Frequently Asked Questions
Q: What are the primary services KPMG offers?
A: KPMG provides audit, tax, and advisory services.
Q: How did KPMG get its name?
A: The initials KPMG come from the last names of the founders: Klynveld, Peat, Marwick, and Goerdeler.
Q: When was the modern form of KPMG established?
A: The modern KPMG was established in 1987 following the merger of Peat Marwick International and Klynveld Main Goerdeler.
Q: How extensive is KPMG’s global reach?
A: KPMG operates in over 150 countries with more than 160,000 employees globally.
Q: Which industries does KPMG serve?
A: KPMG serves a broad range of industries, including financial services, healthcare, technology, manufacturing, and government.
Related Terms
Deloitte: Another member of the Big Four, providing audit, consulting, tax, and advisory services worldwide.
PricewaterhouseCoopers (PwC): One of the Big Four firms, known for delivering audit, assurance, consulting, and tax services globally.
Ernst & Young (EY): A Big Four firm offering assurance, advisory, tax, and transaction advisory services to clients around the world.
Online Resources
Suggested Books for Further Studies
- “Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports” by Howard Schilit and Jeremy Perler
- “Audit and Accounting Guide: Audits of Property and Liability Insurance Companies” by AICPA
- “Principles of Taxation for Business and Investment Planning” by Sally M. Jones and Shelley C. Rhoades-Catanach
Accounting Basics: “KPMG” Fundamentals Quiz
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