Deloitte

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Deloitte

Type

UK private company, limited by guarantee

Industry

Professional services

Founded

London, England, U.K. (1845)

Founder(s)

William Welch Deloitte

Headquarters

Paramount Plaza, New York City, New York,U.S.

Area served

Worldwide

Key people

Stephen Almond (Chairman) Barry Salzberg (CEO)[1]

Services

Audit Consulting Financial advisory Tax Enterprise Risk

Revenue

US$28.8 billion (2011)

Employees

182,000 (September 2011)

Website

Deloitte.com/global

Deloitte Touche Tohmatsu Limited (

/dlt/), commonly referred to as Deloitte, is one of the Big

Four accountancy firms along withPricewaterhouseCoopers (PwC), Ernst & Young, and KPMG.

Deloitte is the second largest professional services network in the world by revenue, with 182,000 employees in more than 150 countries providing audit,tax, consulting, enterprise risk and financial advisory services.[2] In FY 2011, Deloitte earned a record $28.8 billion USD in revenues, ranking second behind PwC's record $29.2 billion.[3] Its global headquarters is located in Paramount Plaza, Midtown Manhattan, New York City, New York.[4]
Contents
[hide]

1 History

1.1 Early history 1.2 Mergers 1.3 Recent history

2 Global structure 3 Name and branding 4 Services 5 Staff 6 Criticisms 7 Sponsorship 8 Notable current and former employees

8.1 Business 8.2 Politics and public service

9 See also 10 References 11 External links

[edit]History [edit]Early

history

Offices in Los Angeles

In 1845 William Welch Deloitte opened an office in Basinghall Street in London. Deloitte was the first person to be appointed an independent auditor of a public company.[5] He went on to open an office in New York in 1880.[5] In 1896 Charles Waldo Haskins and Elijah Watt Sells formed Haskins & Sells in New York.[5] In 1898 George Touche established an office in London and then in 1900 joined John Ballantine Niven in establishing the firm of Touche Niven in the Johnston Building at 30 Broad Street in New York.[5] At the time, there were fewer than 500 CPAs practicing in the United States, but the new era of income taxes was soon to generate enormous demand for accounting professionals. On April 1, 1933, Colonel Arthur Hazelton Carter, President of the New York State Society of Certified Public Accountants and Managing Partner of Haskins & Sells, testified before the U.S. Senate Committee on Banking and Currency. Carter helped convince Congress that independent audits should be mandatory for public companies.[5] In 1947, Detroit accountant George Bailey, then president of the American Institute of Certified Public Accountants, launched his own organization. The new entity enjoyed such a positive start that in less than a year, the partners merged with Touche Niven and A.R. Smart to form Touche, Niven, Bailey & Smart.
[5]

Headed by Bailey, the organization grew rapidly, in part by creating a dedicated management

consulting function. It also forged closer links with organizations established by the co-founder of Touche Niven, George Touche: the Canadian organization Ross and the British organization George A. Touche.
[5]

In 1960, the firm was renamed Touche, Ross, Bailey & Smart, becoming Touche Ross in 1969.[5]

[edit]Mergers
In 1952 Deloitte merged with Haskins & Sells to form Deloitte, Haskins & Sells.[5] In 1968 Nobuzo Tohmatsu formed Tohmatsu Awoki & Co, a firm based in Japan that was to become part of the Touche

Ross network in 1975.[5] In 1972 Robert Trueblood, Chairman of Touche Ross, led the committee responsible for recommending the establishment of the Financial Accounting Standards Board.[5] He led the expansion of Touche Ross in that era. In 1982, David Moxley and W. Grant Gregory became the leaders at Touche Ross. In 1985, Edward A. Kangas, a management consultant, was appointed managing partner of Touche Ross. In 1984, J. Michael Cook became managing partner of Deloitte, Haskins & Sells. In 1989 Deloitte Haskins & Sells in the USA merged with Touche Ross in the USA to form Deloitte & Touche. The merged firm was led jointly by J. Michael Cook and Edward A. Kangas. Led by the UK partnership, a smaller number of Deloitte Haskins & Sells member firms rejected the merger with Touche Ross and shortly thereafter merged with Coopers & Lybrand to form Coopers & Lybrand Deloitte (later to merge with Price Waterhouse to become PwC).[6] Some member firms of Touche Ross also rejected the merger with Deloitte Haskins & Sells and merged with other firms.[6]

[edit]Recent

history

Deloitte Office Building in Downtown Chicago

At the time of the US-led mergers to form Deloitte & Touche, the name of the international firm was a problem, because there was no worldwide exclusive access to the names "Deloitte" or "Touche Ross" - key member firms such as Deloitte in UK and Touche Ross in Australia had not joined the merger. The name DRT International was therefore chosen, referring to Deloitte, Ross and Tohmatsu. In 1993 the international firm was renamed Deloitte Touche Tohmatsu to reflect the contribution from the Japanese firm.[5] as well as agreements to use both of the names Deloitte and Touche. In 1995, the partners of Deloitte & Touche decided to create Deloitte & Touche Consulting Group (now known as Deloitte Consulting).[7] In 2002, Arthur Andersen's UK practice, the firm's largest practice outside the U.S., agreed to merge with Deloitte's UK practice. Andersen's practices in Spain, the Netherlands, Portugal, Belgium, Mexico, Brazil and Canada also agreed to merge with Deloitte.[8][9] The spin off of Deloitte France's consulting division led to the creation of Ineum Consulting.[10]

In 2009, Deloitte purchased the North American Public Service practice of BearingPoint (formerly KPMG Consulting) after it filed for bankruptcy protection.[11]The firm also took over the UK property consultants Drivers Jonas in January 2010.[12] In 2011, Deloitte acquired DOMANI Sustainability Consulting and ClearCarbon Consulting in order to expand its sustainability service offerings.[13] In 2012, Deloitte announced the acquisition of Ubermind, Inc., an innovative mobile agency.[14]

[edit]Global

structure

Offices in Downtown Auckland, New Zealand.

For many years, the organization and its network of member firms were legally organized as a Swiss Verein. As of 31 July 2010, members of the Verein became part of Deloitte Touche Tohmatsu (DTTL), a UK private company, limited by guarantee. Each member firm within its global network remains a separate and independent legal entity, subject to the laws and professional regulations of the particular country or countries in which it operates.[15] This structure is similar to other professional services networks which seek to limit vicarious liability for acts of other members. As separate and legal entities, member firms and DTTL cannot obligate each other. Professional services continue to be provided by member firms only and not DTTL. With this structure, the members should not be liable for the negligence of other independent members. This structure also allows them to be members of the IFAC Forum of Firms[16] which is network of accounting firm networks.

[edit]Name

and branding

While in 1989, in most countries, Deloitte, Haskins & Sells merged with Touche Ross forming Deloitte & Touche, in the United Kingdom the local firm of Deloitte, Haskins & Sells merged instead with Coopers &

Lybrand (which today is PwC).[17] For some years after the merger, the merged UK firm was called Coopers & Lybrand Deloitte and the local firm of Touche Ross kept its original name. In the mid-1990s however, both UK firms changed their names to match those of their respective international organizations. While the full name of the UK private company is Deloitte Touche Tohmatsu Limited, in 1989 it initially branded itself DRT International. In 2003 the rebranding campaign was commissioned by Bill Parrett, the then CEO of DTT, and led by Jerry Leamon, the global Clients and Markets leader.[18] According to the company website, Deloitte now refers to the brand under which independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected clients.[19] In 2008, Deloitte adopted its new Always One Step Ahead (AOSA) brand positioning platform to support the existing Deloitte vision: To be the Standard of Excellence. AOSA represents the global organizations value proposition, and is never used as a tagline. The recent launch of the Green Dot ad campaign also aligns with Deloittes brand strategy and positioning framework.[20]

[edit]Services

Deloitte offices at Tower 600 of theRenaissance Center in Detroit.

Deloitte member firms offer services in the following functions, with country-specific variations on their legal implementation (i.e. all operating within a single company or through separate legal entities operating as subsidiaries of an umbrella legal entity for the country).[21]

Audit and Enterprise Risk Services: Provides the organization's traditional accounting and audit services, as well as offerings in enterprise risk management, information security and privacy, data quality and integrity, project risk, business continuity management, internal auditing and IT control assurance.[22]

Consulting: Assists clients by providing services in the areas of enterprise applications, technology integration, strategy & operations, human capital, andshort-term outsourcing.

Financial Advisory: Provides corporate finance services to clients, including dispute, personal and commercial bankruptcy, forensics, e-discovery, document review, advisory and valuation services.[23][24]

Tax: Helps clients increase their net asset value, undertake the transfer pricing and international tax activities of multinational companies, minimize their tax liabilities, implement tax computer systems, and provides advisory of tax implications of various business decisions.[25]

Other Services: provides specialized services to clients in the fields of International Financial Reporting Standards (IFRS), clients with interest in China andJapan, and others.[26]