6/8/12 Deloitte - Wikipedia, the free encyclopedia 1/9 en.wikipedia.org/wiki/Deloitte Deloitte & Touche 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 (http://www.deloitte.com/view/en_GX/global/index.htm) Deloitte From Wikipedia, the free encyclopedia Deloitte Touche Tohmatsu Limited ( / d ə ˈ l ɔɪ t/ ), commonly referred to as Deloitte , is one of the Big Four professional services firms along with PricewaterhouseCoopers (PwC), Ernst & Young, and KPMG. Deloitte is the second largest professional services network in the world by revenue and has 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] In 2012, it is reported that in the U.K. Deloitte has the largest number of clients amongst FTSE 250 companies. [4] Its global headquarters is located in New York City, United States. [5] Contents 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
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6/8/12 Deloitte - Wikipedia, the free encyclopedia
/dəˈlɔɪt/), commonly referred to asDeloitte, is one of the Big Fourprofessional services firms along withPricewaterhouseCoopers (PwC), Ernst& Young, and KPMG.
Deloitte is the second largest professionalservices network in the world by revenueand has 182,000 employees in more than150 countries providing audit, tax,consulting, enterprise risk and financial
advisory services.[2] In FY 2011,Deloitte earned a record $28.8 billionUSD in revenues, ranking second behind
PwC's record $29.2 billion.[3]
In 2012, it is reported that in the U.K.Deloitte has the largest number of clients
amongst FTSE 250 companies.[4]
Its global headquarters is located in New
York City, United States.[5]
Contents
1 History
1.1 Early history1.2 Mergers
1.3 Recent history
2 Global structure
3 Name and branding
4 Services
5 Staff
6 Criticisms
7 Sponsorship
8 Notable current and formeremployees
8.1 Business
8.2 Politics and public
service
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Offices in Los Angeles
9 See also
10 References
11 External links
History
Early history
In 1845 William Welch Deloitte opened an office in Basinghall Street inLondon. Deloitte was the first person to be appointed an independent
auditor of a public company.[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]
In 1898 George Touche established an office in London and then in 1900joined 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 thenew era of income taxes was soon to generate enormous demand foraccounting professionals.
On March 1, 1933, Colonel Arthur Hazelton Carter, President of theNew York State Society of Certified Public Accountants and ManagingPartner of Haskins & Sells, testified before the U.S. Senate Committeeon Banking and Currency. Carter helped convince Congress that independent audits should be mandatory for
public companies.[6]
In 1947, Detroit accountant George Bailey, then president of the American Institute of Certified PublicAccountants, 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] Headed byBailey, the organization grew rapidly, in part by creating a dedicated management consulting function. It also forgedcloser 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]
Mergers
In 1952 Deloitte merged with Haskins & Sells to form Deloitte, Haskins & Sells.[6] In 1968 Nobuzo Tohmatsuformed Tohmatsu Awoki & Co, a firm based in Japan that was to become part of the Touche Ross network in
1975.[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.
In 1982, David Moxley and W. Grant Gregory became the leaders at Touche Ross. In 1985, Edward A. Kangas,
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Deloitte Office Building in Downtown
Chicago
a management consultant, was appointed managing partner of Touche Ross. In 1984, J. Michael Cook becamemanaging 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 smallernumber of Deloitte Haskins & Sells member firms rejected the merger with Touche Ross and shortly thereaftermerged with Coopers & Lybrand to form Coopers & Lybrand Deloitte (later to merge with Price Waterhouse to
become PwC).[7] Some member firms of Touche Ross also rejected the merger with Deloitte Haskins & Sells and
merged with other firms.[7]
Recent history
At the time of the US-led mergers to form Deloitte & Touche, the nameof the international firm was a problem, because there was no worldwideexclusive access to the names "Deloitte" or "Touche Ross" - key memberfirms such as Deloitte in UK and Touche Ross in Australia had not joinedthe merger. The name DRT International was therefore chosen, referringto Deloitte, Ross and Tohmatsu. In 1993 the international firm wasrenamed Deloitte Touche Tohmatsu to reflect the contribution from the
Japanese firm.[6] as well as agreements to use both of the names Deloitteand Touche.
In 1995, the partners of Deloitte & Touche decided to create Deloitte &
Touche Consulting Group (now known as Deloitte Consulting).[8]
In 2000, Deloitte acquired Eclipse to add Internet design based solutions to its consulting capabilities. Eclipse was
later separated into Deloitte Online and Deloitte Digital.[9]
In 2002, Arthur Andersen's UK practice, the firm's largest practice outside the U.S., agreed to merge withDeloitte's UK practice. Andersen's practices in Spain, the Netherlands, Portugal, Belgium, Mexico, Brazil and
Canada also agreed to merge with Deloitte.[10][11] The spin off of Deloitte France's consulting division led to the
creation of Ineum Consulting.[12]
In 2009, Deloitte purchased the North American Public Service practice of BearingPoint (formerly KPMG
Consulting) after it filed for bankruptcy protection.[13] The firm also took over the UK property consultants Drivers
Jonas in January 2010.[14]
In 2011, Deloitte acquired DOMANI Sustainability Consulting and ClearCarbon Consulting in order to expand its
sustainability service offerings.[15]
In 2012, Deloitte announced the acquisition of Übermind, Inc., an innovative mobile agency.[16]
Global structure
For many years, the organization and its network of member firms were legally organized as a Swiss Verein. As of31 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,
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Offices in Downtown Auckland, New
Zealand.
subject to the laws and professional regulations of the particular country or countries in which it operates.[17]
This structure is similar to other professional services networks which seek to limit vicarious liability for acts of othermembers. As separate and legal entities, member firms and DTTL cannot obligate each other. Professional servicescontinue to be provided by member firms only and not DTTL. With thisstructure, the members should not be liable for the negligence of otherindependent members. This structure also allows them to be members of
the IFAC Forum of Firms[18] which is network of accounting firmnetworks.
Name and branding
While in 1989, in most countries, Deloitte, Haskins & Sells merged withTouche Ross forming Deloitte & Touche, in the United Kingdom thelocal firm of Deloitte, Haskins & Sells merged instead with Coopers &
Lybrand (which today is PwC).[19] For some years after the merger, themerged UK firm was called Coopers & Lybrand Deloitte and the localfirm of Touche Ross kept its original name. In the mid-1990s however,both UK firms changed their names to match those of their respectiveinternational organizations.
While the full name of the UK private company is Deloitte ToucheTohmatsu Limited, in 1989 it initially branded itself DRTInternational. 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.[20]
According to the company website, Deloitte now refers to the brand under which independent firms throughout theworld collaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected
clients.[21]
In 2008, Deloitte adopted its new “Always One Step Ahead” (AOSA) brand positioning platform to support theexisting Deloitte vision: “To be the Standard of Excellence”. AOSA represents the global organization’s valueproposition, and is never used as a tagline. The recent launch of the Green Dot ad campaign also aligns with
Deloitte’s brand strategy and positioning framework.[22]
Services
Deloitte member firms offer services in the following functions, with country-specific variations on their legalimplementation (i.e. all operating within a single company or through separate legal entities operating as subsidiaries
of an umbrella legal entity for the country).[23]
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.[24]
Consulting: Assists clients by providing services in the areas of enterprise applications, technology integration,
strategy & operations, human capital, and short-term outsourcing.Financial Advisory: Provides corporate finance services to clients, including dispute, personal and
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Tax: Helps clients increase their net asset value, undertake thetransfer 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.[27]
Other Services: provides specialized services to clients in the fields
of International Financial Reporting Standards (IFRS), clients with
interest in China and Japan, and others.[28]
Staff
Deloitte offers its staff a variety of career models to choose from basedon their preferences, geographic location and business need. Thesecareer models also vary for each function. Traditional titles for Consultingare "analyst" through "principal", FAS has "associate" through "partner",and the delivery-focused track features "specialist" through "specialistleader".
Deloitte hires entry-level personnel to client-facing functions through theirgraduate recruitment programs at selected universities.
The organization is consistently rated by Fortune as one of their "100
Best Companies To Work For".[29]
In 2007 and 2009, Deloitte was rated the number one place to launch
your career by BusinessWeek.[30][31]
Criticisms
Disputes involving Deloitte include:
Adelphia Communications Corporation - The Securities andExchange Commission announced on April 26, 2005 that Deloitte
had agreed to pay $50 million to settle charges relating to
Adelphia's 2000 financial statements.[32]
Guangdong Kelon Electrical Holdings Company Limited -Investors have claimed that there was a failure to alert them to the
company's poor financial position.[33]
Haringey Council Refresh Project - A local government IT project
in the UK, in which costs rose from £9 million to £24.6 million.Deloitte were consultants on the project, despite being employed
at the same time as the council's auditors.[34]
Los Angeles Unified School District (LAUSD) - The firm implemented the SAP HR system for LAUSD for$95 million and because of faults in the system, some teachers were underpaid, overpaid, or not paid at
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all.[35] As of December 31, 2007 LAUSD had incurred a total of $140 million in payments to Deloitte to get
the system working properly.[36] 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.[37]
State of California Courts System - The firm has been working on a statewide case management systemwhich originally had a budget of around $260 million. Almost $500 million has already been spent and costs
are expected to run as high as $2 billion. No single court is yet fully operational.[38]
Australian Tobacco Industry - In 2011 Deloitte 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.[39] When a
second Deloitte report focusing on counterfeit cigarettes was released, Home Affairs Minister Brendan
O'Connor described the second report as "baseless and deceptive" and "bogus."[40] Public health officialscriticised Deloitte's decision to conduct the research, as it added credibility to the tobacco industry's effort to
undermine the Government's plain cigarette packaging legislation.[41]
Canadian Bar Association - In September 2003, Deloitte reported to the CBA that motor vehicle accident
insurance claims for bodily injury had been declining since 1999, which refuted the government's andindustry's argument that general damages for soft-tissue injury had to be capped at $4,000. Within hours of
release, the report was withdrawn due to pressure from the Insurance Bureau of Canada. The Institute of
Chartered Accountants of Alberta found Deloitte guilty of professional misconduct and fined the firm
$64,000.[42]
Sponsorship
The U.K. member firm of Deloitte is a sponsor of the London 2012 Olympics[43] and the Royal Opera House.[44]
The Canadian member firm was also the official professional services supplier for the 2010 Vancouver Winter
Olympic Games[45] and 2010 Winter Paralympic Games.[46] The US member firm of Deloitte is a sponsor of the
United States Olympic Committee.[47] In Asia, the Singapore member firm of Deloitte was a sponsor of the 2010
Summer Youth Olympics.[48]
Notable current and former employees
Keith Bradshaw - Cricketer
Dave Karnes - U.S. MarineChris Moneymaker – Winner of the Main Event at the 2003 World Series of Poker
David Pitt-Watson - Scottish Business and Social Entrepreneur
Guy Spier - Investor
Prince Amedeo of Belgium, Archduke of Austria-Este - Belgian and Austrian prince
Business
R. Anthony Benten - Treasurer of The New York Times Company (2005–present)
Fred Goodwin - CEO of the Royal Bank of Scotland (2001–2008)
Sergio Marchionne - CEO of Fiat
Allison McGourty - founder of Lo-Max Records
Sam Morgan - Founder of TradeMe
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Eugene Shvidler - President of Sibneft (1998–2005)Orin C. Smith - CEO of Starbucks (2000–05)
Politics and public service
Chloe Smith - Member of the British Parliament (2009–)Eric Forth - Member of the British Parliament (1983–2006)
Vito Fossella - Member of the U.S. House of Representatives (1997–2009)
Bill Owens - 40th Governor of Colorado (1999–2007)
Pierre Pettigrew - Canadian Minister of Foreign Affairs (2004–06)
Tom Ridge - 45th Governor of Pennsylvania (1996–2001), - Assistant to the President for Homeland
Security (2003–2005), - US Secretary of Homeland Security (2003–2005)
Nicol Stephen - Deputy First Minister of Scotland (2005–2007)
Bola Tinubu - Governor of Lagos State (1999–2007)Wayne Goss - Premier of the State of Queensland, Australia (1989–1996)
Peter Cosgrove - Chief of the Australian Defence Force (2002–2005)
Thomas M. Davis - Former member of the U. S. House of Representatives
2. ^ Deloitte continues as an engine of employment creation and announces record revenues of US$28.8 billion(http://www.deloitte.com/view/en_GX/global/press/global-press-releases-en/96616a3cfdc82310VgnVCM1000001a56f00aRCRD.htm) Deloitte. Retrieved on September 22, 2011.
3. ^ PwC reports record $29.2 billion revenue, regains lead (http://www.reuters.com/article/2011/10/03/us-pwc-idUSTRE7920UJ20111003) Reuters. 3 October 2011.
10. ^ Suzanne Kapner (2002-04-11). "ENRON'S MANY STRANDS: THE ACCOUNTANTS; British Unit Of AndersenIs Defecting To Deloitte" (http://www.nytimes.com/2002/04/11/business/enron-s-many-strands-accountants-british-unit-andersen-defecting-deloitte.html?scp=14&sq=arthur%20andersen%20deloitte&st=Search) . New YorkTimes. http://www.nytimes.com/2002/04/11/business/enron-s-many-strands-accountants-british-unit-andersen-defecting-deloitte.html?scp=14&sq=arthur%20andersen%20deloitte&st=Search. Retrieved 2010-02-24.
11. ^ "Canadian Unit To Join Deloitte" (http://www.nytimes.com/2002/04/13/business/international-business-canadian-unit-to-join-deloitte.html?pagewanted=1) . New York Times. 2002-04-13.http://www.nytimes.com/2002/04/13/business/international-business-canadian-unit-to-join-deloitte.html?pagewanted=1. Retrieved 2010-02-24.
12. ^ Ineum Consulting (http://www.oracle.com/profit/industry/071408_ineum_.html) at Oracle.com, August 2008
13. ^ BearingPoint to sell business units to Deloitte, PwC(http://washington.bizjournals.com/washington/stories/2009/03/23/daily20.html) , Washington Business Journal,March 24, 2009
14. ^ Deloitte acquires Drivers Jonas (http://www.ft.com/cms/s/0/cfcf9962-06cd-11df-b058-00144feabdc0.html) ,Financial Times, 21 January 2010
16. ^ Deloitte Acquires Ubermind; Establishes Lead in the Mobile Revolution (http://www.prnewswire.com/news-releases/deloitte-acquires-ubermind-establishes-lead-in-the-mobile-revolution-136656363.html) at prnewswire.com,4 January 2012
17. ^ Andrew Clark (20 September 2010). "Deloitte Touche Tohmatsu quits Swiss system to make UK its new legalhome" (http://www.guardian.co.uk/business/2010/sep/20/deloitte-touche-tohmatsu-legal-registration-london) . TheGuardian. http://www.guardian.co.uk/business/2010/sep/20/deloitte-touche-tohmatsu-legal-registration-london.Retrieved 20 September 2010.
18. ^ IFAC Forum of Firms (http://www.ifac.org/about-ifac/forum-firms/)
19. ^ PWC: History and milestones (http://www.pwc.com/pl/eng/about/main/history.html)
20. ^ Ernst & Young launches rebrand plan (refers to Deloitte rebranding in 2003)(http://www.accountancyage.com/accountancyage/news/2200392/ernst-young-launches-rebrand)
21. ^ About Deloitte (http://www.deloitte.com/view/en_GX/global/about/index.htm)
22. ^ 170,000 brand managers step ahead, as one (http://globalblogs.deloitte.com/deloitteperspectives/2010/11/170000-brand-managers-step-ahead-as-one.html)
32. ^ Deloitte settles in Adelphia scandal (http://www.financegates.com/news/business_news/2005-04-26/deloitte_04262005.html)
33. ^ Deloitte faces double trouble in China (http://www.chinadaily.com.cn/bizchina/2006-03/31/content_556998.htm)
34. ^ How a London council's visionary IT plan became a project management nightmare(http://www.computerweekly.com/Articles/2006/02/21/214275/how-a-london-councils-visionary-it-plan-became-a-project-management.htm)
38. ^ California court officials, judges spar over costly computer system(http://www.sacbee.com/2010/04/11/2669739/california-court-officials-judges.html)
39. ^ Australian Customs and Border Protection response to Media Watch(http://www.abc.net.au/mediawatch/transcripts/1118_customs.pdf) ABC, 10 June 2011
40. ^ Joe Hildebrand (http://www.news.com.au/national/bogus-smoke-a-2-billion-waste/story-e6frfkvr-1226092757819) News.com.au, 12 July 2011
41. ^ Professor Simon Chapman (http://www.abc.net.au/unleashed/2783400.html) ABC Online, 6 July 2011
42. ^ "Accountant penalized for info leak" (http://www.canada.com/story_print.html?id=726159b7-ddc8-4d68-a346-be5c0ca0edb4&sponsor=) . http://www.canada.com/story_print.html?id=726159b7-ddc8-4d68-a346-be5c0ca0edb4&sponsor=. Retrieved 15 September 2011.
43. ^ Deloitte becomes first London 2012 tier two sponsor (http://www.brandrepublic.com/News/771115/Deloitte-becomes-first-London-2012-tier-two-sponsor/)
45. ^ Vancouver 2010 Paralympic Winter Games (http://www.vancouver2010.com/en/-/32678/q0c15c/index.html)
46. ^ Deloitte named Official Professional Services Provider to Vancouver 2010 Winter Games(http://www.vancouver2010.com/en/news/news-releases/-/55752/32566/u6ncq5/vancouver-2010-enhances-team-w.html)
47. ^ Deloitte Announces Sponsorship of U.S. Olympic Committee and U.S. Olympic and Paralympic Teams(http://www.csrwire.com/press/press_release/21971-Deloitte-Announces-Sponsorship-of-U-S-Olympic-Committee-and-U-S-Olympic-and-Paralympic-Teams)
48. ^ Deloitte was official partner of inaugural YOG in 2010 (http://www.agri-biz.com/Singlenews.aspx?DirID=107&rec_code=323043)
External links
Official website (http://www.deloitte.com/global)
Deloitte's global recruiting (http://careers.deloitte.com)
CoolAvenues.com — Deloitte — Company Profile (http://www.coolavenues.com/companies/deloitte#)
Yahoo! — Deloitte Touche Tohmatsu Company Profile (http://biz.yahoo.com/ic/40/40120.html)Trustee in bankruptcy (http://www.bankruptcy.deloitte.ca/) - Bankruptcy information in Canada
Retrieved from "http://en.wikipedia.org/w/index.php?title=Deloitte&oldid=495815803"
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1849 establishments in England
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