KPMG: A Global Leader in Audit, Tax, and Advisory Services

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KPMG is one of the largest global networks of professional services firms, providing audit, tax, and advisory services. Established in 1818, it operates in 143 countries with over 270,000 employees. KPMG's structure consists of independent member firms, each responsible for their own operations, while KPMG International provides support services. The firm generated $36 billion in revenue in 2023, with significant contributions from its audit, advisory, and tax services. KPMG emphasizes integrity, excellence, and collaboration as core values, aiming to inspire confidence and empower change in the communities it serves.

This blog is designed to provide aspiring candidates with a comprehensive overview of KPMG, covering its history, culture, services, and career opportunities, to help you prepare effectively for interviews and embark on a successful career with this esteemed institution.

1. Overview of KPMG

About

Attribute Details
Founders William Barclay Peat, James Marwick, Roger Mitchell, Piet Klijnveld, Jaap Kraayenhof, Reinhard Goerdler, Thompson McLintock, Frank Wilber Main
Industry Type Professional Services
Founded 1987
Headquarters London, England

History

Early Years (1870 - 1911)

  • 1870: William Barclay Peat founded his accounting firm, William Barclay Peat & Co., in London.
  • 1897: James Marwick and Roger Mitchell established Marwick, Mitchell & Co. in New York City.
  • 1911: The firms of William Barclay Peat & Co. and Marwick, Mitchell & Co. merged to form Peat Marwick International (PMI), creating a global network of accounting firms.

Formation of KPMG (1979 - 1987)

  • 1979: Piet Klynveld's firm, Klynveld Kraayenhof & Co., merged with Deutsche Treuhand-Gesellschaft and McLintock Main Lafrentz to create Klynveld Main Goerdeler (KMG).
  • 1986: KMG and Peat Marwick International agreed to merge.
  • 1987: The official merger of PMI and KMG took place, forming KPMG, which stands for Klynveld, Peat, Marwick, and Goerdeler.

Expansion and Development (1988 - 2000)

  • 1990: KPMG began expanding into Eastern Europe following the fall of the Berlin Wall.
  • 1993: KPMG Peat Marwick and Deutsche Treuhand-Gesellschaft merged, further solidifying KPMG's presence in Europe.
  • 1998: KPMG established its new head office in Germany, enhancing its operational capabilities.

Modern Era (2001 - 2024)

  • 2001: KPMG spun off its U.S. consulting firm through an IPO, rebranding it as BearingPoint.
  • 2002: KPMG separated its consulting business from its auditing services, leading to the sale of KPMG Consulting, Inc.
  • 2003: KPMG divested its legal arm, Klegal, and sold its Dispute Advisory Services to FTI Consulting.
  • 2007: KPMG's member firms in the UK, Germany, Switzerland, and Liechtenstein merged to form KPMG Europe LLP.
  • 2015: KPMG celebrated its 125th anniversary and launched various initiatives to enhance its global service offerings.
  • 2015: KPMG IT Service was established following the acquisition of cloudpartner.de.
  • 2020: KPMG International Limited was incorporated in London, transitioning from a Swiss Verein to a limited company.
  • 2021: KPMG UK appointed its first female leaders, Bina Mehta and Mary O'Connor, amidst leadership changes.
  • 2021: KPMG UK revised its partnership process and faced potential fines related to the Carillion lawsuit.
  • 2022: KPMG announced plans to acquire 50% of UK-based venture capital advisory firm Acceleris.
  • 2022: Plans were made to downsize its office footprint in New York City by 2025.
  • 2023: KPMG reported $36 billion in revenue, reflecting growth across its audit, advisory, and tax services.
  • 2024: KPMG partners approved the merger of its UK and Switzerland firms, enhancing their service capabilities and generating $4.4 billion annually.

Key Milestones in KPMG's History

Year

Key Milestones

1987

The official merger of PMI and KMG took place, forming KPMG.

1990

KPMG began expanding into Eastern Europe following the fall of the Berlin Wall.

2001

KPMG spun off its U.S. consulting firm through an IPO, rebranding it as BearingPoint.

2002

KPMG separated its consulting business from its auditing services.

2015

KPMG celebrated its 125th anniversary, marking a significant milestone in its history.

2020

KPMG International Limited was incorporated in London, transitioning from a Swiss Verein to a limited company.

2021

KPMG UK appointed its first female leaders, Bina Mehta and Mary O'Connor.

2022

KPMG announced plans to acquire a significant stake in UK-based venture capital advisory firm Acceleris.

2023

KPMG reported $36 billion in revenue, reflecting growth across its audit, advisory, and tax services.

2024

KPMG's partners approved the merger of its UK and Switzerland firms, enhancing service capabilities.

2. Company Culture

Purpose, Vision, and Values

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Purpose: Inspire Confidence. Empower Change.

KPMG aims to inspire confidence in their people, clients, and society, helping to empower the change needed to solve challenges and lead the way forward.

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Vision: To be the best professional services firm.

KPMG's vision is to be the clear choice for clients, defined by the quality of their services and the relationships they build.

💡
Core Values: Integrity, Excellence, Courage, Together, and For Better.

KPMG's core values are:

  • Integrity: We do what is right.
  • Excellence: We never stop learning and improving.
  • Courage: We think and act boldly.
  • Together: We respect each other and draw strength from our differences.
  • For Better: We do what matters.

3. Comprehensive Product and Service Offerings at KPMG

KPMG offers a comprehensive range of products and services across various sectors, focusing on audit, tax, and advisory services. Here’s an overview of their key offerings:

1. Audit & Assurance

KPMG provides a range of audit and assurance services designed to enhance the reliability of financial reporting and improve business performance:

  • Financial Statement Audits: Independent audits of financial statements to ensure compliance with accounting standards.
  • Internal Audit Services: Support in evaluating and improving internal controls and risk management processes.
  • Sustainability Assurance: Verification of sustainability reports and disclosures, ensuring transparency in environmental, social, and governance (ESG) practices.
  • Regulatory Compliance: Assistance in meeting regulatory requirements and standards.

KPMG offers comprehensive tax and legal services to help organizations navigate complex tax environments:

  • Corporate Tax Advisory: Strategic tax planning and compliance services to optimize tax positions.
  • Transfer Pricing: Development of transfer pricing policies and documentation to comply with international regulations.
  • Indirect Tax Services: Guidance on VAT, sales tax, and other indirect taxes.
  • Employment Tax Services: Support in managing employment-related tax obligations and compliance.
  • Legal Services: Assistance with corporate law, mergers and acquisitions, and contract management.

3. Advisory

KPMG's advisory services focus on helping organizations improve their performance and manage risks:

  • Management Consulting: Strategic planning, operational improvement, and organizational change management.
  • Risk Management: Identifying and mitigating risks across various domains, including financial, operational, and compliance risks.
  • Deal Advisory: Support throughout the transaction lifecycle, including due diligence, valuation, and post-merger integration.
  • Technology Advisory: Guidance on digital transformation, IT strategy, and technology implementation.

4. Private Enterprise

KPMG provides tailored services for private enterprises, focusing on growth and sustainability:

  • Business Strategy and Planning: Assistance with strategic planning, market entry, and growth strategies.
  • Succession Planning: Support for family businesses in preparing for ownership transitions.
  • Financial Management: Advisory on financial reporting, budgeting, and forecasting.

5. ESG (Environmental, Social, and Governance)

KPMG helps organizations integrate ESG considerations into their business strategies:

  • Sustainability Consulting: Guidance on sustainability practices, reporting, and compliance with ESG regulations.
  • Impact Measurement: Tools and methodologies to measure and report on social and environmental impact.
  • ESG Risk Management: Identifying and managing risks related to environmental and social factors.

6. AI (Artificial Intelligence)

KPMG leverages AI to enhance business processes and decision-making:

  • AI Strategy and Implementation: Developing AI strategies and implementing AI solutions to drive efficiency.
  • Data Analytics: Utilizing AI and machine learning to analyze data for insights and predictive analytics.
  • Automation Services: Implementing robotic process automation (RPA) to streamline operations.

4. Financial Performance and Market Position

KPMG's financial performance and market position can be summarized based on their recent revenue reports and performance indicators:

Financial Performance

  • Fiscal Year 2023 Revenue: KPMG reported global revenues of $36 billion for the fiscal year ending September 30, 2023, marking an 8% increase in local currency and a 5% increase in U.S. dollars compared to the previous year.
  • Revenue Growth by Service Line:
  • Audit Services: Grew by 9%, driven by a strong focus on audit quality and significant investments in talent and technology.
  • Advisory Services: Increased by 7%, benefiting from investments in technology and strategic alliances.
  • Tax & Legal Services: Experienced a 10% growth, fueled by tax transformation initiatives and evolving client needs in ESG (Environmental, Social, and Governance) areas.

Market Position

  • KPMG Financial Performance Index (FPI): KPMG's FPI measures the financial health of companies globally. As of Q3 2023, the global average FPI score was 90.01, indicating a slight decline from the previous quarter. This index helps assess the relative strength and health of key markets and sectors, providing insights into financial performance trends.
  • Investment Strategy: KPMG has committed to investing $4.2 billion by 2026 in technology, talent, and ESG initiatives as part of its Collective Strategy. This investment aims to enhance service delivery and maintain competitive advantages in the market.
  • Employee Growth: KPMG's global headcount increased by 3% to over 273,000 employees, reflecting their commitment to attracting and retaining top talent.

5. Key Competitors

Competitors of KPMG

KPMG operates in a competitive landscape with several key players in the professional services sector. Here are the top five competitors, along with an overview of each, their services, and their market position:

1. Deloitte

  • Overview: Deloitte is one of the largest professional services networks in the world, providing audit, consulting, financial advisory, risk management, and tax services.
  • Services: Deloitte offers a wide range of services, including audit and assurance, consulting (strategy and operations, human capital, technology), risk advisory, financial advisory, and tax services.
  • Market Position: Deloitte is consistently ranked as the largest of the Big Four accounting firms by revenue, reporting approximately $59 billion in global revenue for FY2023. Their extensive service offerings and strong brand recognition position them as a leader in the industry.

2. PwC (PricewaterhouseCoopers)

  • Overview: PwC is a global network of firms delivering services in audit and assurance, consulting, and tax. It is known for its commitment to quality and innovation.
  • Services: PwC's services include audit and assurance, consulting (management, technology, and risk consulting), and tax services, along with specialized services in areas like digital transformation and sustainability.
  • Market Position: PwC reported global revenues of approximately $50 billion in FY2023, making it one of the largest professional services firms. It is recognized for its strong client relationships and extensive industry expertise.

3. EY (Ernst & Young)

  • Overview: EY is a multinational professional services firm providing assurance, tax, transaction, and advisory services. It focuses on building a better working world.
  • Services: EY offers services in audit and assurance, tax, advisory (including strategy and transactions), and consulting, with a strong emphasis on digital transformation and innovation.
  • Market Position: EY generated around $45 billion in global revenue in FY2023. The firm is known for its strong focus on technology and innovation, particularly in areas like artificial intelligence and blockchain.

4. BDO

  • Overview: BDO is a global network of public accounting firms providing audit, tax, and advisory services. It is known for its personalized service and industry expertise.
  • Services: BDO offers audit and assurance, tax services, advisory (including business consulting and risk management), and specialized services for various industries.
  • Market Position: BDO reported global revenues of approximately $12 billion in FY2023, positioning it as a significant player in the accounting industry, especially among mid-market clients.

5. Grant Thornton

  • Overview: Grant Thornton is a global accounting organization providing a range of services to dynamic organizations, including audit, tax, and advisory services.
  • Services: Grant Thornton's offerings include audit and assurance, tax services, advisory (including business consulting and risk management), and specialized services for sectors like healthcare and manufacturing.
  • Market Position: Grant Thornton reported global revenues of around $6 billion in FY2023. The firm is recognized for its client-focused approach and strong presence in the mid-market segment.

6. Corporate Social Responsibility (CSR)

KPMG is deeply committed to Corporate Social Responsibility (CSR), focusing on making a positive impact on society and the environment. Here are the key aspects of KPMG's CSR initiatives:

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Education
KPMG emphasizes the importance of education as a driver of social inclusion and economic growth. They engage in various initiatives to support educational institutions, provide scholarships, and donate school supplies to children from vulnerable families.
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Health
KPMG participates in health-related initiatives, such as blood donation campaigns and donations of medical equipment to hospitals. They aim to support healthcare systems and improve access to medical care for those in need.
🌳
Environment
Through the Global Green Initiative, KPMG is committed to tackling climate change and promoting sustainability. They engage in activities like tree planting and implementing eco-friendly practices within their operations.
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Social Inclusion
KPMG supports various social causes, including programs for the elderly, assistance for families in need, and initiatives aimed at integrating marginalized communities. They often collaborate with non-profit organizations to amplify their impact.

Awards and Recognition

KPMG has received several awards and recognitions for its Corporate Social Responsibility (CSR) initiatives, highlighting its commitment to community engagement and sustainable practices. Here are some notable achievements:

  1. Outstanding Achievement in Corporate Social Responsibility Award (2017): KPMG was awarded the Outstanding Achievement in Corporate Social Responsibility Award at the Chambers Ireland CSR Awards. This recognition was based on KPMG's strong engagement across various CSR initiatives and their consistent performance in all aspects of corporate social responsibility.
  2. Outstanding Achievement in Corporate Social Responsibility Award (2013): KPMG also received the Outstanding Achievement in Corporate Social Responsibility Award at the 2013 Chambers Ireland CSR Awards. The award recognized the sustained excellence of KPMG's CSR programs, demonstrating their commitment to ethical business practices and community support.
  3. Excellence in Community Volunteering Award (2017): In addition to the overall CSR award, KPMG won the Excellence in Community Volunteering Award for their Family for Literacy program, which aims to improve literacy among children through volunteer efforts.
  4. Excellence in Workplace CSR Award (2017): KPMG was also recognized with the Excellence in Workplace CSR Award at the same event in 2017, highlighting their efforts to create a supportive and engaging workplace environment while promoting social responsibility among employees.

7. Recruitment Process at KPMG

The recruitment process at KPMG in India is designed to assess candidates through a series of evaluations that determine their fit for the organization. Here’s a detailed overview of the recruitment process based on the provided information:

1. Online Assessment Test: Shortlisted applicants are required to complete a proctored online assessment test, which is shared via a link and is typically 60-90 minutes long. This test evaluates various skills, including comprehension, interpretation, logical reasoning, verbal reasoning, and psychometric abilities. Some practices may also assess proficiency in quantitative math and data analytics.
2. Group Discussion: Candidates participate in a group discussion activity that evaluates soft skills such as oral communication, articulation, structured thinking, proactiveness, presence of mind, teamwork, and leadership qualities.
3. Case Study Round: This round involves assessing subject matter expertise through case studies. Candidates may be required to engage in written tests or interactive discussions that evaluate their verbal and written communication, pragmatic thinking, general knowledge, and business acumen.
4. Evaluation by Recruiter: Candidates have a direct interaction with a recruiter, which can occur in-person, over the phone, or virtually. This evaluation focuses on assessing the overall fit within the designated role and the firm, as well as behavioral aspects such as personality, business awareness, skills, ability, and resilience.
5. Evaluation by Technical Panel: This stage involves direct interaction with the hiring team, which may include the Hiring Manager, Team Lead, Business Leader/Partner, and Function Heads. The assessment typically takes place in a one-on-one format but can also involve a panel of two to three interviewers. This evaluation focuses on the candidate’s technical competencies required for the job, in addition to the attributes assessed in previous stages.

8. Interview Questions at KPMG

Typical interview questions at KPMG often focus on assessing a candidate's skills, experiences, and alignment with the company's values. Here are some common questions you might encounter:

General KPMG Interview Questions

  1. Tell me about yourself.
  2. Why do you want to work at KPMG?
  3. What do you know about KPMG's services?
  4. What makes you a good fit for this role?
  5. How do you handle stress and pressure?
  6. Describe a time when you worked as part of a team.
  7. What are your greatest strengths and weaknesses?
  8. Where do you see yourself in five years?
  9. How do you prioritize your work?
  10. Can you describe a situation where you had to solve a problem creatively?

Questions About Experience And Background

  1. Can you walk us through your resume and highlight your relevant experience?
  2. What was your greatest professional accomplishment?
  3. Describe a challenging situation you faced in a previous job and how you handled it.
  4. How has your education prepared you for a career at KPMG?
  5. What specific skills have you gained from your previous roles that will benefit KPMG?
  6. Tell me about a time you received constructive criticism. How did you respond?
  7. What projects have you worked on that are relevant to this position?
  8. How do you stay updated with industry trends and changes?
  9. Describe your experience with [specific software or tool relevant to the role].
  10. What motivates you in your work?

In-Depth Questions

  1. What do you understand by KPMG's values and how do they align with your personal values?
  2. Can you explain the importance of audit and assurance services in today’s business environment?
  3. Discuss a time when you had to analyze complex data. What was your approach?
  4. How would you handle a disagreement with a team member regarding a project?
  5. What steps would you take to ensure compliance with regulatory standards in an audit?
  6. Describe a situation where you had to adapt to significant changes in your work environment.
  7. What is your approach to managing multiple deadlines?
  8. How do you ensure accuracy and attention to detail in your work?
  9. Can you discuss a recent trend in the industry that you find interesting?
  10. Explain how you would approach a ne

9. Applicant's guide to acing Interviews

Before the Interview

  1. Self-evaluate: Reflect on your strengths, passions, and preferred work style to choose a suitable role.
  2. Research: Understand the job description, company profile, and culture to assess your fitment.
  3. Prepare questions: Have doubts clarified and demonstrate your interest in the role.
  4. Eliminate distractions: Silence your mobile phone and ensure a professional virtual setup.
  5. Dress appropriately: Choose corporate/business/formal attire based on the company's dress code.
  6. Anticipate questions: Practice common interview questions and prepare relevant examples.

During the Interview

  1. Be honest: Answer truthfully and avoid unethical behavior.
  2. Make a good impression: Greet warmly, maintain eye contact, and exhibit confidence.
  3. Listen attentively: Pay attention to the questions and provide detailed yet concise answers.
  4. Manage your body language: Avoid being too rigid or overly familiar.
  5. Take your time: Align your thoughts before answering technical or case-based questions.
  6. Ask insightful questions: Demonstrate your interest and seek clarifications.
  7. Express gratitude: Thank the interviewer for their time and reiterate your interest in the position.

After the Interview

  1. Be patient: Wait for the established timeframe to hear back from the interviewer/recruiter.
  2. Follow-up: If the deadline has passed, send a polite follow-up email to the employer.

Remember, interviews are valuable learning experiences, even if they do not lead to a job offer. Stay positive and continue refining your skills for future opportunities.

10. Future Outlook and Strategic Plans

KPMG's future outlook and strategic plans focus on leveraging technology, enhancing client services, and addressing emerging market challenges. Here are the key elements derived from the search results:

Future Outlook of KPMG

  1. Embracing Technology: KPMG is prioritizing investments in generative AI and other emerging technologies to enhance operational efficiency and client service delivery. The firm recognizes the transformative potential of AI in automating tasks and improving decision-making processes.
  2. Focus on ESG: KPMG aims to integrate Environmental, Social, and Governance (ESG) factors into its service offerings. The firm is committed to helping clients navigate the complexities of decarbonization and sustainability, positioning ESG as a catalyst for growth rather than merely a compliance requirement.
  3. Talent Management: Recognizing the importance of talent in driving success, KPMG is adopting flexible work models to attract and retain skilled professionals. The firm emphasizes the need for diversity and inclusion in its workforce to foster innovation and meet client needs effectively.
  4. Client-Centric Approach: KPMG is committed to enhancing its client relationships by delivering tailored solutions that address specific industry challenges. The firm is focused on understanding client needs and aligning its services accordingly.
  5. Strategic Alliances: KPMG is strengthening its partnerships with technology leaders such as SAP, Microsoft, and Salesforce to expand its service capabilities and deliver integrated solutions to clients. These alliances will help KPMG enhance its offerings in cloud services, cybersecurity, and data analytics.

Strategic Plans

  1. Investment in Technology: KPMG plans to invest significantly in technology to enhance its service delivery and operational efficiency. This includes expanding its capabilities in areas like cloud computing, cybersecurity, and data analytics.
  2. Scaling Operations: The firm aims to scale its operations by enhancing its go-to-market strategies and leveraging its existing resources. KPMG is focused on building a comprehensive service portfolio that meets the evolving needs of its clients.
  3. Enhancing Service Offerings: KPMG is committed to innovating its service offerings, particularly in audit, tax, and advisory services. The firm is exploring new methodologies and technologies to improve service quality and client satisfaction.
  4. Navigating Economic Challenges: KPMG is preparing to address the challenges posed by global economic uncertainties and geopolitical dynamics. The firm is focused on resilience and adaptability to ensure continued growth and stability.
  5. Sustainability Initiatives: KPMG is integrating sustainability into its business model, focusing on reducing its carbon footprint and promoting sustainable practices within its operations and client engagements.

11. Conclusion

KPMG is poised for a dynamic future, focusing on innovation, technology, and sustainability. The firm aims to leverage advancements in artificial intelligence and digital transformation to enhance client services and operational efficiency. KPMG is committed to integrating Environmental, Social, and Governance (ESG) considerations into its business model, helping clients navigate sustainability challenges. Additionally, KPMG plans to invest significantly in talent development and diversity to foster an inclusive workplace. By strengthening strategic partnerships and enhancing its service offerings, KPMG is set to maintain its competitive edge and drive growth in an increasingly complex global market.

Key Takeaways for Aspiring KPMG Candidates:

  1. Research KPMG Thoroughly: Understand KPMG's values, services, and recent initiatives. This knowledge will help you tailor your responses and demonstrate genuine interest during the interview.
  2. Utilize the STAR Technique: Prepare to answer behavioral questions using the STAR method (Situation, Task, Action, Result). This structured approach helps convey your experiences clearly and effectively.
  3. Be Authentic and Personalize Your Answers: Share unique experiences that highlight your skills and align with KPMG's values. Authenticity can set you apart from other candidates.
  4. Dress Professionally and Communicate Confidently: First impressions matter. Dress appropriately for the interview and maintain confident body language and eye contact to convey professionalism.
  5. Prepare Thoughtful Questions: At the end of the interview, ask insightful questions about the role, team dynamics, or KPMG's future initiatives. This shows your engagement and interest in the position.

By focusing on these key takeaways, aspiring candidates can effectively position themselves for success at KPMG. Preparation, alignment with the firm's values, and a strong network can significantly enhance your application. Emphasizing relevant experiences and demonstrating genuine enthusiasm will help you stand out in a competitive recruitment process.