What is the Full Form of KPMG?
The full form of KPMG is Klynveld Peat Marwick Goerdele which is a part of the Big Four and is a worldwide platform of professional auditing services. It is one of the leading accounting companies that audit over 80% of public companies worldwide.
Incorporated: London, England
Headquarters: Amstelveen, Netherlands
Current CEO: William B. Thomas
Revenue as of 2022: $3,464 crores
Countries: Firms around 145 countries with more than 265,000 employees
Lines of Service: Advisory, Financial Audit, and Tax
History of KMPG
John Moxham commenced a company in 1818, which James Grace Jr. and James Grace took over. It was then renamed James Grace & Son in 1857. This way, the company’s ownership went through continuous transformations. By 1979, four companies came together from different countries –
- McLintock Main LaFrentz from the USA
- Klynveld Kraayenhof & Co. from Netherlands
- Deutsche Treuhand- Gesellschaft from Germany
They formed KMG, a group of national practices that created an international firm. The first CEO of this company was Reinhard Goerdeler. He was an essential part of the foundation of KMPG.
In 1987, Peat Marwick joined hands with KMG, and this was a massive merger of accounting firms. The company was then called “KMPG” in the United States of America.
Today, this global company has spread its services in three lines –
- Tax and Legal services: $7.35 billion
- Advisory: $15.44 billion
- Audit: $11.85 billion
Services Offered to the Clients
- KMPG offers a multitude of services to its clients around the world –
- Tax and Legal
- Audit and assurance
- Private enterprise
KMPG currently handles various clients from several industries, including life sciences, asset management, government, insurance, banking, capital markets, energy, automotive, consumer & retail, chemicals, and performance technologies, and more.
Leadership Team in India
The leadership team of India oversees the operations so that the services run smoothly at all times. The team members are –
- Ajay Mehra: Non-executive Chairman
- Yezdi Nagporewalla: Chief Executive Officer
- Anindya Basu: National Managing Partner
- Nitin Atroley: Partner and Head for Strategy and People
- Arjun Vaidyanathan: Chief Operating Officer
- Rajeev Dimri: National Head of Tax
The firm has more than 100 offices in 50 US states and over 650 offices around the world.
Facts & Figures
- As of 2019, the global annual revenue was 29.8 billion, while it was around $10 billion in the USA alone.
- Its USA staff accounts for more than 35,000, while the worldwide staff number stands at over 219,000 (including partners).
- The market share of KMPG is over 82% in the FORTUNE Global 500. It is over 80% in the FORTUNE Global 1000.
Part of the Big 4 Companies
- Owing to globalization, companies worldwide are continuously expanding their services, and that’s why today we can see a variety of multinational cooperation with networks spread across various countries.
- Big 4 is a term given to organizations at the top w.r.t to their professional services. These companies include KMPG, Deloitte, PricewaterhouseCoopers, and Ernst & Young.
- KMPG is the market leader in its services based out of the United Kingdom. It clocked a revenue of approximately $32 billion in 2021, proving its success.
- The company is a result of mergers over the years, while its oldest entity is Grace, Darbyshire, & Todd (a company founded in 1818). It is one of the oldest business units in the world.
- A significant company was Peat Marwick which began its operations in 1925, while KMG in 1979. They worked independently for several years and finally decided to join hands. Their collaboration led to one of the most significant financial mergers in history, resulting in the formation of KMPG.
- KMPG also focuses on consulting, assurance, legal, financial, actuarial, and tax advice like any other company. Several rating companies worldwide have rated KMPG as one of the top firms for employees to work. The company has helped boost everyone’s corporate career. If you have a mark of KMPG on your resume, any company would be willing to hire you.
- KMPG is a leading risk, business, and financial advisory provider in India known for its corporate governance, internal audit, and regulatory services. Over the years, it has received plenty of awards, and the company for how it has changed the dynamics of the financial world.
Controversies of KMPG
Since 2003, the multinational company has faced lawsuits and tax shelter fraud. Still, KMPG stands strong as a leader around the world. Recently in May, the company raised more than £14 million for the Carillion audit scandals. It was due to the quality of work delivered by the company.
We hope that this EDUCBA information on “Full Form of KPMG” was beneficial to you. You can view EDUCBA’s recommended articles for more information,