Docstoc

Deloitte Deloitte Deloitte Touche Tohmatsu also branded

Document Sample
Deloitte Deloitte Deloitte Touche Tohmatsu also branded Powered By Docstoc
					Deloitte
Deloitte Touche Tohmatsu (also branded as Deloitte) is one of the largest professional services
organizations in the world and one of the Big Four auditors, along with PricewaterhouseCoopers,
Ernst & Young, and KPMG.

According to the organization's website as of 2008, Deloitte has approximately 165,000 staff at
work in 140 countries, delivering audit, tax, consulting and financial advisory services through
its member firms.

Its global headquarters is located in Paramount Plaza, Midtown Manhattan, New York City, New
York.[2]


Contents
[hide]

        1 History
             o 1.1 Early history
             o 1.2 Mergers
             o 1.3 Recent history
        2 Global structure
        3 Name and branding
        4 Services
        5 Staff
             o 5.1 Corporate Social Networking
        6 Major clients
        7 Criticisms
        8 Sponsorship
        9 Notable current and former employees
             o 9.1 Business
             o 9.2 Politics and public service
             o 9.3 Other
        10 See also
        11 References
        12 External links


History
Early history

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.[3] He went on to
open an office in New York in 1880.[3]
In 1895 Charles Waldo Haskins and Eijah Watt Sells formed Haskins & Sells in New York.[3]

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.[3] 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.[3]

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.[3] 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.[3] In 1960, the firm was renamed Touche, Ross,
Bailey & Smart, becoming Touche Ross in 1969.[3]

Mergers

In 1952 Deloitte merged with Haskins & Sells to form Deloitte, Haskins & Sells.[3] 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.[3] In 1972 Robert Trueblood, Chairman of Touche Ross, led
the committee responsible for recommending the establishment of the Financial Accounting
Standards Board.[3] 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).[4] Some
member firms of Touche Ross also rejected the merger with Deloitte Haskins & Sells and
merged with other firms.[4]
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.[3] 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).[5]

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.[6][7] The spin off of
Deloitte France's consulting division led to the creation of Ineum Consulting.[8]

In 2009, Deloitte purchased the North American Public Service practice of BearingPoint
(formerly KPMG Consulting) after it filed for bankruptcy protection.[9] The firm also took over
the UK property consultants Drivers Jonas in January 2010.[10]

Global structure

Deloitte Touche Tohmatsu is a Swiss Verein, a membership organization under the Swiss Civil
Code whereby each member firm is a separate and independent legal entity.

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).[11] 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 organisations.

While the full name of the Swiss verein is Deloitte Touche Tohmatsu, 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.[12]

Services




Deloitte offices at Tower 600 of the Renaissance 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).[13]

       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.[14]
       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 commercial bankruptcy, forensics, and valuation.[15]
       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.[16]
       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.[17]

Deloitte serves various clients in financial services, consumer & industrial products, energy &
resources, health care & life sciences, public sector, technology, media, & telecommunications,
and other industries and subcategories. Not all services are offered in all countries.

It is reported that Deloitte generated global consulting revenue of $6.5 billion in 2009. Punit
Renjen, the head of Deloitte Consulting in the U.S., wants Deloitte to be seen as a "category of
one," a firm that can compete in high-end strategy advice against McKinsey and in information
technology work against others. In 2009, Deloitte is ranked No. 2 behind McKinsey among
strategic consulting firms, and the second-largest consulting firm globally, slightly smaller than
IBM. It targets clients that "are not only expecting great insight but that it be implementable and
that results ... generated ... are tangible and measurable".[18]

Deloitte does not place as strong an emphasis on the offshoring model as some of the other
professional services companies. However, the U.S. member firm has investments in delivery
centers in India, known internally as "Region 10."

There are also non-client-facing subsidiaries that comprise the people that operate the firm itself,
such as finance (except project controllers); human resources; communications; marketing;
Strategy, Research & Innovation; mail and printing services; technology support; and
administrative assistants. Other subsidiaries exist to maintain ownership of Deloitte's various
intellectual property assets.

Sarbanes-Oxley regulations apply to what combinations of services Deloitte's U.S. member firm
can provide a client. For example, a particular client may not be able to engage Deloitte for both
corporate audit and consulting services at the same time. Additionally, Deloitte staff in client-
facing positions must certify independence from financial interests in the firm's clients at least
annually to avoid conflicts of interest and insider trading.

Staff

Deloitte offers its staff a variety of career models to choose from based on their preferences,
geographic location and business need. These career models also vary for each function.
Traditional titles for Consulting are "consultant" through "principal", FAS has "associate"
through "partner", and the delivery-focused track features "specialist" through "specialist leader".

Deloitte hires entry-level personnel to client-facing functions through their graduate recruitment
programs at selected universities.

The organization is consistently rated by Fortune as one of their "100 Best Companies To Work
For".[19]

In 2007 and 2009, Deloitte was rated the number one place to launch your career by
BusinessWeek.[20][21]

Corporate Social Networking

The U.S. member firm of Deloitte has deployed a social/professional networking environment
for its consultants.[22] Deloitte's "D Street" began when the firm's talent organization wanted to
make a large company feel smaller. In addition, it wanted to create an environment that would
appeal to its mostly younger workforce. After getting the support of Deloitte leadership and
partnering with internal IT, communications and knowledge management groups, the team
launched the alpha version of D Street in June 2007, basing it on a commercially available
collaborative platform. The initial rollout was to 1,500 employees.[23] Deloitte also leverages an
expertise discovery device known as iConnect.[24] iConnect conducts a keyword search across
any relevant user-driven database to highlight who may possess knowledge that is of use to
others. The process of discovery is obscured from the person discovered.

Major clients

Major clients include (note that not all of these are audit clients nor have they been confirmed by
Deloitte member firms):

      Aerospace: Alliant Techsystems, BAE Systems, Boeing, Northrop Grumman, Lockheed Martin,
       Raytheon
      Auction: Sotheby's
      Banks: Arab Bank, KB, The World Bank, Rosbank, Royal Bank of Canada, Washington Mutual,
       Royal Bank of Scotland, BNP Paribas, National Bank of Pakistan, National Bank of Canada,
       National Bank of Greece, Grupo Santander, Bank of Tokyo-Mitsubishi
      Chemicals: Dow Chemical Company, Huntsman Corporation, Solutia
      Conglomerate: Tyco International
      Energy and Electricity: American Electric Power, Sasol, Southern Company, Xcel Energy,
       Dominion Resources, AES Corporation, Southern California Edison, EOG Resources
      Financial Services: American Express, Blackstone Group, BlackRock, VISA, Charles Schwab Corp.,
       E*TRADE Group Inc., Fannie Mae, Fidelity Investments, Lloyds TSB, MasterCard, Morgan Stanley,
       Sky Financial Group Inc., Sun Life Financial, MoneyGram, Radian Group, MICEX, Berkshire
       Hathaway, Countrywide Financial, Cantor Fitzgerald L.P.
      Government: 2012 Summer Olympics, 2010 Winter Olympics, State of Texas, Commonwealth of
       PA, State of California, State of Florida, United States Department of Defense, United States
       Department of Justice, United States Department of Homeland Security, United States
       Intelligence Community, FDIC, Federal Reserve System[25]
      Healthcare: Abbott Laboratories, McKesson Corporation, UnitedHealth Group, Health Net, Inc.
      Industrial Good & Products: Chrysler, Deere & Company, Dura Automotive Systems, Fiat Group,
       General Motors, Hyundai Motors, ITW, Parker Hannifin, Tata Group, Vulcan Materials Company,
       UPS
      Industrial Metals: Arcelor Mittal, MMK (Russia), Norilsk Nickel, Gerdau
      Insurance: Allstate, Berkshire Hathaway, Metlife, Norwich Union, Mutual of Omaha
      Manufacturing: PPG
      Media: Bloomberg L.P., Middle East Broadcasting Center, Comcast
      Pharmaceuticals & Biotechnology: Genzyme, Bristol-Myers Squibb, McKesson Corporation,
       Monsanto Company, Rite Aid Corporation, Schering-Plough, Hikma, Johnson & Johnson
      Publishing: Cox Enterprises
      Religion: The Church of Jesus Christ of Latter-day Saints
      Retail & Consumer Products: Ahold, Best Buy, Coach Inc., Gap, Heinz, Hyatt, Kimberly-Clark, Levi
       Strauss & Co., Liz Claiborne Inc., L'Oréal, MGM Mirage, Nordstrom, Peet's Coffee & Tea, Procter
       and Gamble, Safeway Inc., Sears, Starbucks, Walgreens, Pep Boys, Wal-Mart, The Brick Group
       Income Fund
      Sports: Major League Baseball, Comcast Spectacor, Carolina Panthers, Carolina Hurricanes,
       Pittsburgh Penguins, National Football League, New York Giants
      Technology: Dell Inc., Gateway, Inc., Microsoft, Motorola, Pentair, Telvent
      Telecommunications: AT&T Mobility, BT, Comcast, MTS, Sprint Nextel Corporation, Umniah,
       Verizon Wireless, Vodafone, WPP
      Transportation: Port Authority of New York and New Jersey
      Travel: ATA Airlines, Avianca, Continental Airlines, China Airlines, Midwest Airlines, Northwest
       Airlines, US Airways

Criticisms

Disputes involving Deloitte include:

      Adelphia Communications Corporation - The Securities and Exchange Commission announced
       on April 26, 2005 that Deloitte had agreed to pay $50 million to settle charges relating to
       Adelphia's 2000 financial statements.[26]
      Guangdong Kelon Electrical Holdings - Investors have claimed that there was a failure to alert
       them to the company's poor financial position.[27]
      Haringey Council Refresh Project - A local government IT project in the UK, in which costs rose
       from £9 m to £24.6 m. Deloitte were consultants on the project, despite being employed at the
       same time as the council's auditors.[28]
      Irish Health Service Executive - Poor consulting support of health accounts system software in
       2005 led to major cost overruns and the Irish Health Service Executive pulling the plug on the
       computer system entirely after substantial cash outlays.[29]
      Los Angeles Unified School District (LAUSD) - The firm implemented the SAP HR system for
       LAUSD for $95 m and because of faults in the system, some teachers were underpaid, overpaid,
       or not paid at all.[30] As of December 31, 2007 LAUSD had incurred a total of $140 m in payments
       to Deloitte to get the system working properly.[31] 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.[32]
      State of California Courts System - The firm has been working on a statewide case management
       system which 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.[33]

Sponsorship

The U.K. member firm of Deloitte is a sponsor of the London 2012 Olympics.[34] The Canadian
member firm is also the official professional services supplier for the 2010 Vancouver Winter
Olympic Games[35] and 2010 Winter Paralympic Games.[36] The US member firm of Deloitte is a
sponsor of the United States Olympic Committee.[37]

Notable current and former employees
Business

      R. Anthony Benten - Treasurer of The New York Times Company (2005–present)
      Fred Goodwin - CEO of the Royal Bank of Scotland (2001–2008)
      Sam Morgan - Founder of TradeMe
      Eugene Shvidler - President of Sibneft (1998–2005)
       Orin C. Smith - CEO of Starbucks (2000–05)
       James Sun - Contestant on The Apprentice

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

Other

       Keith Bradshaw - Cricketer
       Dave Karnes - U.S. Marine
       Chris Moneymaker – Winner of the Main Event at the 2003 World Series of Poker
       Prince Amedeo of Belgium, Archduke of Austria-Este - Belgian and Austrian prince

				
DOCUMENT INFO