Deloitte

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Deloitte Touche Tohmatsu Limited
Type UK private company, limited by guarantee
Industry Professional services
Founded 1845
Founder(s) William Welch Deloitte
Headquarters New York City, New York, U. S.
Area served Worldwide
Key people Punit Renjen (Chairman)[1]
Barry Salzberg (CEO)[2]
Services Assurance
Tax Advisory
Consulting
Financial Advisory
Enterprise Risk
Revenue Increase US$ 32.41 billion (2013)
Employees 203,000 (2013)
Website deloitte.com

Deloitte Touche Tohmatsu Limited /dəˈlɔɪt//ˈtʃ//tˈmɑːt.s/, commonly referred to as Deloitte, is the largest professional services network in the world by revenue and by the number of professionals. Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services with more than 200,000 professionals in over 150 countries.[3] It is commonly referred to as one of the "Big Four" professional services firms along with PricewaterhouseCoopers (PwC), Ernst & Young, and KPMG. In FY 2012–13, it earned a record $32.4 billion USD in revenues.[4]

Its global headquarters are located in New York City, United States.[5]

History[edit]

Formation and early years[edit]

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, namely the Great Western Railway.[6] He went on to open an office in New York in 1880.[6]

In 1896, Charles Waldo Haskins and Elijah Watt Sells formed Haskins & Sells in New York.[6] It was later described as "the first major auditing firm to be established in the country by American rather than British accountants."[7]

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.[6] 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.

Mergers and Acquisitions[edit]

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.[6] 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.[6] In 1960, the firm was renamed Touche, Ross, Bailey & Smart, becoming Touche Ross in 1969.[6]

In 1968 Nobuzo Tohmatsu formed Tohmatsu Aoki & Co, a firm based in Japan that was to become part of the Touche Ross network in 1975.[6]

In 1989, Deloitte Haskins & Sells in the USA merged with Touche Ross in the USA to form Deloitte & Touche. 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,[6] which is the firm's current formal identity.

Deloitte Office Building in Downtown Chicago

Impact on Accounting Standards[edit]

On 1 March 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.[6]

In 1972 Robert Trueblood, Chairman of Touche Ross, led the committee responsible for recommending the establishment of the Financial Accounting Standards Board.[6] He led the expansion of Touche Ross in that era.

Deloitte Centre in Auckland, New Zealand.

Services and Operations[edit]

Deloitte offices at Tower 200 of the Renaissance Center in Detroit.
Current Deloitte office in Toronto.

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).

Marketing, branding and identity[edit]

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.[12] This structure is similar to other professional services networks which seek to limit vicarious liability for acts of other members. Professional services are provided by member firms, and member firms and DTTL cannot obligate each other.

Informally, the firm is frequently abbreviated to "Deloitte" and this identity is generally used in marketing for simplicity. The firm's logo features a prominent green dot at the end, which has been the focus of its marketing campaigns in recent years.[13]

The firm typically engages in little to no television and print advertising, generally preferring a more indirect marketing approach such as sports sponsorships, including:

Awards and Honors[edit]

  • The organization was rated by Fortune as one of their "100 Best Companies To Work For" in 2007.[20]
  • In 2007 and 2009, Deloitte was rated the number one place to launch your career by BusinessWeek.[21][22]

Notable Projects[edit]

  • Parmalat - The Italian member firm was the auditor of the multinational dairy and food corporation when it filed for bankruptcy in December 2003 with billions in debts outstanding. The Italian firm was ordered to court and later sued by Parmalat and its investors. The criminal charges were eventually dismissed and the lawsuits settled for $8.9 million USD.[23]
  • Adelphia Communications Corporation – The Securities and Exchange Commission announced on 26 April 2005 that the US member firm had agreed to pay $210 million USD to settle charges relating to Adelphia's 2000 financial statements.[24]
  • Guangdong Kelon Electrical Holdings Company Limited – The Chinese member firm was the auditor and investors claimed that the firm failed to alert them to the company's poor financial position.[25]
  • Los Angeles Unified School District (LAUSD) – The US member firm implemented the SAP HR system for LAUSD for $95 million USD and because of faults in the system, some teachers were underpaid, overpaid, or not paid at all.[26] In 2008, there was some evidence that the payroll issues had started to stabilize with errors below 1% according to LAUSD's chief operating officer.[27]
  • State of California Courts System – The US member firm had been working on a massive long-running statewide case management system project since 2001 when the project was terminated by California's Judicial Council in 2012 due to lengthy implementation timelines and California's budget concerns.[28]
  • Australian Tobacco Industry – In 2011, the Australian member firm was commissioned by the tobacco industry to compile a report on illicit tobacco. The Australian Customs and Border Protection Service officials called the report "potentially misleading" and raised concerns about the "reliability and accuracy" of the data.[29]

See also[edit]

References[edit]

  1. ^ Punit Renjen
  2. ^ Meet Barry Salzberg
  3. ^ Deloitte grows for fourth consecutive year, reporting US $32.4 billion in revenue Deloitte. Retrieved on 19 September 2012.
  4. ^ Deloitte grows for fourth consecutive year, reporting US $32.4 billion in revenue
  5. ^ "Contact Us. " Deloitte. Retrieved on 7 December 2009.
  6. ^ a b c d e f g h i j k [1]
  7. ^ Elijah Watt Sells, "The Accounting Hall of Fame", Fisher College of Business. Retrieved 2013-08-07.
  8. ^ Assurance & Advisory services
  9. ^ Deloitte: Financial Advisory services
  10. ^ Deloitte: Discovery
  11. ^ Deloitte: Tax services
  12. ^ Andrew Clark (20 September 2010). "Deloitte Touche Tohmatsu quits Swiss system to make UK its new legal home". The Guardian. Retrieved 20 September 2010. 
  13. ^ "Green Dot Campaign". Deloitte. Retrieved 19 July 2014. 
  14. ^ Deloitte becomes first London 2012 tier two sponsor
  15. ^ Deloitte Ignite
  16. ^ Vancouver 2010 Paralympic Winter Games
  17. ^ Deloitte named Official Professional Services Provider to Vancouver 2010 Winter Games
  18. ^ Deloitte Announces Sponsorship of U. S. Olympic Committee and U. S. Olympic and Paralympic Teams
  19. ^ Deloitte was official partner of inaugural YOG in 2010
  20. ^ Fortune: 100 best companies to work for
  21. ^ Businessweek 2007
  22. ^ Businessweek 2009
  23. ^ "Ex-Parmalat auditors settle US investor lawsuit". Reuters. Retrieved 19 July 2014. 
  24. ^ "Deloitte and Banks to Pay $455 Million to Adelphia Investors". The New York Times. Retrieved 19 July 2014. 
  25. ^ Deloitte faces double trouble in China
  26. ^ Teachers. Start. Boycott-2995901.shtml LAUSD teachers start boycott
  27. ^ Update: LAUSD payroll problems stabilized
  28. ^ California Scraps Massive Courts Software Project
  29. ^ Australian Customs and Border Protection response to Media Watch ABC, 10 June 2011

External links[edit]