A list of KPMG’s largest audit clients is included below.
KPMG is the auditor of Accenture. Accenture has a market capitalization of $71 billion. KPMG won the audit in 2002. Accenture is the former consulting arm of Arthur Andersen. They broke off after the Enron Scandal.
You can see the fees that Accenture has paid to KPMG over the past couple of years in the table below. As you can see that KPMG was able to increase fees by about 10% year-over-year.
|Audit Fee||$16.1 million||$15.5 million|
|Audit Related Fees||$3.5 million||$3.1 million|
|Tax Fees||$1.5 million||$0.9 million|
|Total Fees||$21.1 million||$19.5 million|
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Halliburton is one of the largest oil services firm. Halliburton has a market capitalization of $34 billion. Per the 2016 Proxy Statement it looks KPMG will continue to be Halliburton’s auditors.
Citigroup is one of the largest banks in the world. KPMG was again ratified as Citigroup’s auditors as of the 2016 Proxy statement.
4. General Electric
General Electric has a market capitalization of about $280 billion. They operate as an infrastructure and financial services firm. They are reducing the financial services portion of their business because of increased regulation. KPMG will be ratified as their auditors again as of the 2017 proxy statement. As you can see in the fee detail below that KPMG’s audit fee has decreased significantly. This is most likely due to GE spinning off businesses to avoid further government regulation. KPMG might want this to increase in future years though now that GE’s tax department has been spun off to PwC.
General Electric’s tax department was recently acquired by PwC. KPMG was likely not involved in the bidding process because of independence issues.
|Fee Type – KPMG Fee for GE||2016||2015|
|Audit Fees||$81.5 million||$75.0 million|
|Audit Related Fees||$6.9 million||$20.8 million|
|Tax Fees||$1.5 million||$1.8 million|
|Total||$89.9 million||$97.6 million|
5. Deutsche Bank
Deutsche Bank provides financial products and offers financial services worldwide. They are a leading investment bank. KPMG was ratified as their auditors as of their latest proxy filing.
6. Wells Fargo
Wells Fargo is another one of the largest banks in the world. KPMG was ratified as their independent auditor as of the latest proxy. KPMG has been the independent auditors of Wells Fargo for over 85 years. As you can see KPMG’s audit fee went up to $52 million in 2016 following the scandal where employees created fake accounts for customers. Elizabeth Warren went on warpath questions KPMG’s role in overseeing this fraud.
|Fee Type – Wells Fargo||2016||2015|
|Audit Fees||$41.1 million||$39.2 million|
|Audit Related Fees||$4.7 million||$4.6 million|
|Tax Fees||$6.7 million||$4.5 million|
|Total||$52.5 million||$49.3 million|
Pepsico is a worldwide food and beverage company. They have a market capitalization of $151 billion. KPMG was approved as their independent auditor as of the latest proxy filing.
8. ING Group
ING Group according to the Fortune 500 makes about $225 million in revenue. ING provides banking products to individuals and businesses
9. Rolls Royce
Rolls Royce is one of the most prestigious luxury car brands in the world. KPMG will be their auditor until 2018 at which time PwC will take over. KPMG is currently being investigated because Rolls Royce bribed people and was penalized by several governmental authorities around the world.
The Hershey Company manufactures and distributes confectionery products throughout the world. Their most popular product is obviously their chocolate. They had revenues in excess of $3 billion for their most recent financial year.
2016 is the final year that KPMG will be Hershey’s auditor. Hershey decided to put their audit up for tender and as part of that process they dismissed KPMG as their auditor.
Citigroup is one of the largest banks in the world. KPMG’s audit fees in 2016 exceeded $67 million. The tax fees for KPMG’s services were $9.3 million.
The total fees that KPMG earned in 2016 for all services to Citigroup was $95.4 million.
Pfizer is one of the largest pharmaceutical companies in the world. KPMG’s audit fees in 2016 exceeded $44.5 million. The tax fees for KPMG’s services were $4.3 million.
The total fees that KPMG earned in 2016 for all services to Citigroup was $49.9 million.
13. Emerson Electric
Emerson is a large multinational corporation with a market cap that exceeds $40 billion. They are one of KPMG’s largest clients.
KPMG’s audit fees in 2016 exceeded $24.5 million. The tax fees for KPMG’s services were $500k.
The total fees that KPMG earned in 2016 for all services to Citigroup was $40 million.
Other Audit Clients
14. Liberty Global
15. Omnicom Group
16. The Bank of New York
17. General Dynamics
18. Charter Communications
20. Navistar International Corp
21. Ca Technologies
22. Yum Brands
23. Constellation Brands
24. The Travelers Companies
25. Occidental Petroleum Corportation
26, Estee Lauder Companies, Inc.
28. Unisys Corporations
30. Western Digital Corp
31. Bio-Rad Labs
32. Valero Energy
33. Diebold Inc
34. XPO Logistics
35. Jones Lang Lasalle
36. Versum Materials
KPMG Tax Clients
One of KPMG’s largest tax clients is Siemens. Siemens is a large multinational company located in Germany. KPMG Germany is in charge of the tax compliance work for Siemens.
Since Siemens is a large multinational organization they obviously have a large amount of tax compliance work that needs to be done which is typical of a large organization.
In order to help streamline this tax compliance process, Siemens had KPMG help automate and simplify their tax process.
This is pretty typical work of tax lines of service in the big 4. They help large clients automate what were previously manual processes into more automated processes.
KPMG Advisory Clients
One of KPMG’s advisory clients is Dangote. Dangote is a large conglomerate in Africa.
KPMG Nigeria helped Dangote get the accounting systems in order to help implement an efficient accounting process.
Who are KPMG’s FTSE 100 Audit Clients?
Some of KPMG’s most well known FTSE 100 clients are listed below:
- Associated British Food
- Admiral Group
- BAE Sys
- BHP Billiton
To learn more about KPMG’s FTSE 100 Audit Clients, make sure to visit our FTSE 100 Auditors page.