Deloitte

Last updated

Deloitte
UK private company, limited by guarantee [1]
Industry Professional services
Founded1845;174 years ago (1845)
London, England, United Kingdom
Founder William Welch Deloitte
HeadquartersLondon, United Kingdom [2]
Area served
Worldwide
Key people
Services
RevenueIncrease2.svg US$46.2 billion (2019) [5]
Number of employees
312,000 (2019) [5]
Website www.deloitte.com

Deloitte Touche Tohmatsu Limited /dəˈlɔɪtˈtʃtˈmɑːts/ , commonly referred to as Deloitte, is a multinational professional services network. [6] Deloitte is one of the "Big Four" accounting organizations and the largest professional services network in the world by revenue and number of professionals. [7]

Multinational corporation Corporation operating in multiple countries

A multinational corporation (MNC) or worldwide enterprise is a corporate organization that owns or controls production of goods or services in at least one country other than its home country. Black's Law Dictionary suggests that a company or group should be considered a multinational corporation if it derives 25% or more of its revenue from out-of-home-country operations. A multinational corporation can also be referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation, or a stateless corporation. There are subtle but real differences between these three labels, as well as multinational corporation and worldwide enterprise.

Professional services are occupations in the tertiary sector of the economy requiring special training in the arts or sciences. Some professional services require holding professional licenses such as architects, accountants, engineers, doctors and lawyers. Other professional services involve providing specialist business support to businesses of all sizes and in all sectors; this can include tax advice, supporting a company with accounting, IT services or providing management advice.

Contents

Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services with approximately 312,000 professionals globally. [8] In FY 2019, the network earned a record US$46.2 billion in aggregate revenues. [8] As of 2017, Deloitte is the 4th largest privately owned company in the United States. [9]

Audit Systematic and independent examination of books, accounts, documents and vouchers of an organization

An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Auditing has become such a ubiquitous phenomenon in the corporate and the public sector that academics started identifying an "Audit Society". The auditor perceives and recognizes the propositions before them for examination, obtains evidence, evaluates the same and formulates an opinion on the basis of his judgement which is communicated through their auditing report.

A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent. The first known taxation took place in Ancient Egypt around 3000–2800 BC.

A consultant is a professional who provides expert advice in a particular area such as security, management, education, accountancy, law, regulatory compliance, human resources, marketing, finance, health care, engineering, science or any of many other specialized fields.

Deloitte has been ranked number one by market share in consulting by Gartner, [10] and for the fourth consecutive year, Kennedy Consulting Research and Advisory ranks Deloitte number one in both global consulting and management consulting based on aggregate revenue. [11]

Gartner company

Gartner, officially known as Gartner, Inc. is a global research and advisory firm providing information, advice, and tools for businesses in IT, finance, HR, customer service and support, legal and compliance, marketing, sales, and supply chain functions. It is a member of the S&P 500. Its headquarters are in Stamford, Connecticut, United States. The firm changed its name from Gartner Group, Inc to Gartner in 2000.

Management consulting is the practice of helping organizations to improve their performance. Organizations may draw upon the services of management consultants for a number of reasons, including gaining external advice and access to the consultants' specialized expertise.

History

Early history

In 1845, William Welch Deloitte opened an office in London, United Kingdom. Deloitte was the first person to be appointed an independent auditor of a public company, namely the Great Western Railway. [12] He went on to open an office in New York in 1880. [12]

William Welch Deloitte British businessman

William Welch Deloitte was a British accountant and the founder of the professional services firms that subsequently became both Deloitte Touche Tohmatsu and PricewaterhouseCoopers. He was born in London, England. He was one of the fathers of the accountancy profession.

London Capital of the United Kingdom

London is the capital and largest city of England and the United Kingdom. Standing on the River Thames in the south-east of England, at the head of its 50-mile (80 km) estuary leading to the North Sea, London has been a major settlement for two millennia. Londinium was founded by the Romans. The City of London, London's ancient core − an area of just 1.12 square miles (2.9 km2) and colloquially known as the Square Mile − retains boundaries that follow closely its medieval limits. The City of Westminster is also an Inner London borough holding city status. Greater London is governed by the Mayor of London and the London Assembly.

United Kingdom Country in Europe

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a sovereign country located off the north-western coast of the European mainland. The United Kingdom includes the island of Great Britain, the north-eastern part of the island of Ireland, and many smaller islands. Northern Ireland is the only part of the United Kingdom that shares a land border with another sovereign state, the Republic of Ireland. Apart from this land border, the United Kingdom is surrounded by the Atlantic Ocean, with the North Sea to the east, the English Channel to the south and the Celtic Sea to the south-west, giving it the 12th-longest coastline in the world. The Irish Sea separates Great Britain and Ireland. The United Kingdom's 242,500 square kilometres (93,600 sq mi) were home to an estimated 66.0 million inhabitants in 2017.

In 1890, Deloitte opened a branch office on Wall Street headed by Edward Adams and P.D. Griffiths as branch managers. That was Deloitte's first overseas venture. Other branches were soon opened in Chicago and Buenos Aires. In 1898 P.D. Griffiths returned from New York and became a partner in the London office. [13]

Chicago city and county seat of Cook County, Illinois, United States

Chicago, officially the City of Chicago, is the most populous city in the U.S. state of Illinois and the third most populous city in the United States. With an estimated population of 2,705,994 (2018), it is also the most populous city in the Midwestern United States. Chicago is the county seat of Cook County, the second most populous county in the US, with portions of the northwest city limits extending into DuPage County near O'Hare Airport. Chicago is the principal city of the Chicago metropolitan area, often referred to as Chicagoland. At nearly 10 million people, the metropolitan area is the third most populous in the nation.

Buenos Aires Place in Argentina

Buenos Aires is the capital and largest city of Argentina. The city is located on the western shore of the estuary of the Río de la Plata, on the South American continent's southeastern coast. "Buenos Aires" can be translated as "fair winds" or "good airs", but the former was the meaning intended by the founders in the 16th century, by the use of the original name "Real de Nuestra Señora Santa María del Buen Ayre". The Greater Buenos Aires conurbation, which also includes several Buenos Aires Province districts, constitutes the fourth-most populous metropolitan area in the Americas, with a population of around 15.6 million.

In 1896, Charles Waldo Haskins and Elijah Watt Sells formed Haskins & Sells in New York. [12] It was later described as "the first major auditing firm to be established in the country by American rather than British accountants". [14]

Charles Waldo Haskins was an American accountant, and co-founder of the accounting firm Haskins and Sells, a predecessor to Deloitte.

Elijah Watt Sells was an American accountant, and founding partner in Haskins & Sells, a predecessor to Deloitte & Touche.

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. [12]

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. [12]

William Welch Deloitte, founder of Deloitte William welch deloitte small.jpg
William Welch Deloitte, founder of Deloitte

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. [12] 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. [12] In 1960, the firm was renamed Touche, Ross, Bailey & Smart, becoming Touche Ross in 1969. [12] 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. [12] In 1972 Robert Trueblood, Chairman of Touche Ross, led the committee responsible for recommending the establishment of the Financial Accounting Standards Board. [12]

In 1972, Deloitte's firm (by then known as Deloitte, Plender, Griffiths & Co.) merged with Haskins & Sells to form Deloitte Haskins & Sells. [15]

In 1989, Deloitte Haskins & Sells merged with Touche Ross in the US 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). [16] Some member firms of Touche Ross also rejected the merger with Deloitte Haskins & Sells and merged with other firms. [16] In the UK, Touche Ross merged with Spicer & Oppenheim in 1990. [17]

Recent history

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 the 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. [12]

Deloitte Office Building in Downtown Chicago DeloitteOfficeChicago.jpg
Deloitte Office Building in Downtown Chicago

In 1995, the partners of Deloitte & Touche decided to create Deloitte & Touche Consulting Group (now known as Deloitte Consulting). [18]

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. [19]

In 2002, Arthur Andersen's UK practice, the firm's largest practice outside the US, 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. [20] [21] The spinoff of Deloitte France's consulting division led to the creation of Ineum Consulting. [22]

In 2005, Deloitte acquired Beijing Pan-China CPA to become the largest accountancy firm in China. Just prior to this acquisition Deloitte China had about 3,200 employees. This acquisition was part of a five-year plan to invest $150 million in China. Deloitte has had a presence in China since 1917. [23]

In 2007, Deloitte began hiring former employees of the Central Intelligence Agency (CIA) for their competitive intelligence unit known as Deloitte Intelligence. [24]

In 2009, Deloitte purchased the North American public service practice of BearingPoint (formerly KPMG Consulting) for $350 million after it filed for bankruptcy protection. [25]

Deloitte LLP took over the UK property consultants Drivers Jonas in January 2010. As of 2013, this business unit was known as Deloitte Real Estate. [26]

In 2011, Deloitte acquired DOMANI Sustainability Consulting and ClearCarbon Consulting in order to expand its sustainability service offerings. [27]

In January 2012, Deloitte announced the acquisition of Übermind, a mobile advertising agency. [28] The acquisition marked Deloitte's first entrance into the mobile application field. [29]

In November 2012, Deloitte acquired Recombinant Data Corporation, a company specializing in data warehousing and clinical intelligence solutions, and launched Recombinant by Deloitte. [30] In February 2013 Recombinant by Deloitte merged with an internal informatics unit (Deloitte Health Informatics) and launched ConvergeHEALTH by Deloitte. [31]

On 11 January 2013, Deloitte acquired substantially all of the business of Monitor Group, [32] the strategy consulting firm founded by Harvard Business School professor Michael Porter, after Monitor filed for bankruptcy protection. [33]

In 2014 the company introduced Rubix, a blockchain consultancy providing advisory services for clients in different business sectors, including government. In 2016 the company created its first blockchain lab in Dublin. A second hub was launched in New York in January 2017. In 2016, Deloitte Canada set-up a Bitcoin automatic teller machine and equipped a restaurant in its office complex to accept bitcoin as payment. Deloitte CIS partnered with Waves Platform to offering services related to initial coin offerings. Deloitte became a member of the Ethereum Enterprise Alliance and the Hyperledger Project sponsored by the Linux Foundation in May 2017. [34]

In 2016, Deloitte acquired advertising agency Heat of San Francisco, best known for its work Madden NFL from EA Sports and the Hotwire travel website. Heat was the 11th digital marketing agency purchased by Deloitte Digital since its founding in 2012. As of 2016, Deloitte Digital had 7,000 employees. It billed $2.1 billion in 2015, making it one of world's largest digital agencies. [35] [36]

In September 2016, Apple Inc. announced a partnership with Deloitte aimed at boosting sales of its phones and other mobile devices to businesses. As part of the partnership, the two companies will launch a service called Enterprise Next, in which more than 5,000 Deloitte consultants will advise clients on how to make better use of Apple products and services. [37] [38] [39]

In October 2016, Deloitte announced that they were creating Deloitte North West Europe. The Belgian, Danish, Dutch, Finnish, Icelandic, Norwegian, and Swedish member firms will combine with the UK and Swiss member firms to create Deloitte North West Europe. Deloitte, over the next three years, will invest €200m to enhance its services to its global, national and private market clients and to create the best development opportunities. The firm will come into effect on 1 June 2017 and it is estimated to have 28,000 partners and people generating over €5bn in annual revenue. Deloitte North West Europe will account for approximately 20% of all revenue within their Global Network. [40]

Name and branding

Deloitte logo (Short) DeloitteNewSmall.png
Deloitte logo (Short)

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 (later renamed PwC). [41]

While the full name of the UK private company is Deloitte Touche Tohmatsu Limited, in 1989 it initially branded itself DTT International. In 2003, the rebranding campaign was commissioned by William G. Parrett, the then-CEO of DTT, and led by Jerry Leamon, the global Clients and Markets leader. [42]

According to the company website, Deloitte now refers to the brand under which independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected clients. [43]

In 2008, Deloitte adopted its new "Always One Step Ahead" (AOSA) brand positioning platform to support the existing Deloitte vision: "To be the Standard of Excellence". AOSA represents the global organization's value proposition 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. [44]

In June 2016, Deloitte changed its branding and adopted a new logo with Deloitte written in black color instead of earlier blue. [45]

In India, Deloitte operates under several brand names including A.F.Ferguson &Co., A.F.Ferguson Associates, S.B.Billimoria, C.C.Choksi & Co., P.C.Hansotia, Fraser & Ross and Deloitte Haskins & Sells (India). [46]

For many years, the organization and its network of member firms were legally organized as a Swiss Verein (the equivalent to an unincorporated association). 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 in 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. [47]

30 Rockefeller Plaza GE Building by David Shankbone.JPG
30 Rockefeller Plaza

This structure is similar to other professional services networks which seek to limit vicarious liability for acts of other members. As separate and legal entities, member firms and DTTL cannot obligate each other. Professional services continue to be provided by member firms only and not DTTL. With this structure, the members should not be liable for the negligence of other independent members. This structure also allows them to be members of the IFAC Forum of Firms. [48]

Services

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). [5]

Audit

Audit provides the organization's traditional accounting and audit services, as well as internal auditing and IT control assurance. In 2018, audit grew by 7.7%. [5]

Investors in Guangdong Kelon Electrical Holdings Company Limited have claimed that there was a failure to alert them to the company's poor financial position. [49] [50] Deloitte claims it did a good job on the project. Deloitte's global CEO defended the firm's work on the Kelon matter. The firm was the auditor for thirty months from 2002 to 2004. It qualified its opinion in 2004 as to company sales, returns, and allowances. The firm resigned from the Kelon account after completing the 2004 audit. Deloitte said it resigned from the account because management at the client was not committed to best practices in finance. [51]

Consulting

Consulting assists clients by providing services in the areas of enterprise applications, technology integration, strategy & operations, human capital, and short-term outsourcing. In 2018, consulting grew by 15.7%. [5]

In An American Sickness (2017), Dr. Elisabeth Rosenthal attributed to Deloitte a key role in counseling the adoption of "strategic billing" as a way of increasing revenues from hospital business. She dates this development from 2005, when Deloitte hired Tommy Thompson, former secretary of health and human services, as chairman of its global healthcare practice. [52] In 2011, Deloitte was ranked No. 1 by revenue in all areas of healthcare consultinglife sciences, payer, provider, and government health. [53]

The firm implemented the SAP HR system for the Los Angeles Unified School District (LAUSD) for $95 million and because of faults in the system, some teachers were underpaid, overpaid, or not paid at all. [54] As of 31 December 2007, LAUSD had incurred a total of $140 million in payments to Deloitte to get the system working properly. [55] 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. [56]

The firm worked on a statewide case management system which originally had a budget of around $260 million. Almost $500 million had been spent and costs were at one time projected to potentially run as high as $2 billion. No single court became fully operational. [57] California's Judicial Council terminated the project in 2012 citing actual deployment costs associated with the project and California's budget concerns. [58]

Financial advisory

Financial advisory provides corporate finance services to clients, including dispute, personal and commercial bankruptcy, forensics, e-discovery, document review, advisory, mergers & acquisitions, capital projects consulting and valuation services. In 2018, financial advisory grew by 8%. [5]

Risk advisory

Risk advisory provides offerings in enterprise risk management, information security and privacy, data quality and integrity, project risk and cyber risk, and business continuity management and sustainability. In 2018, risk advisory grew by 12%. [5]

Tax & legal 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. In 2018, tax & legal grew by 8.7%. [5]

In November 2013, the international development charity ActionAid accused Deloitte of advising large businesses on how they could use Mauritius to avoid potentially hundreds of millions of dollars of tax in some of the poorest countries in Africa. Deloitte responded by saying that, in the absence of the double-taxation treaties, they advise their clients to avail themselves of arrangements that could result in less taxes being paid to the countries in question. Deloitte also said it was wrong to say it is tax avoidance to make use of provisions in double tax treaties and that without such treaties investment might be reduced. [59]

GovLab

GovLab is the internal think tank of Deloitte Consulting LLP's Federal Government consulting practice, focused on innovation and government reform. Created in 2010, GovLab is based in the Washington, D.C. metro area and typically undertakes 8 or 9 research topics per year, focusing on how future trends, technologies, and business models will affect government. [60]

Offices

Deloitte operates across the world in more than 100 locations including Hong Kong, China and India. [61]

Operations in India

In the late 1990s, Deloitte commenced operations in India, at the same time as another large auditing firm KPMG. In India, ICAI regulations do not permit foreign firms to carry out audits in India. [62] Hence Deloitte carries out audits in India under the name of C.C.Chokshi & Co., an existing auditing firm that it arranged an agreement with in 1998. [63] In 1992, after India was forced to liberalise under one of the conditions of the world bank and IMF sponsored bail out, Deloitte was granted a license to operate in India. It subsequently purchased C.C.Chokshi & Co and now conducts audits in India under the name of this firm. [64]

Awards and recognition

In 2019, Fortune magazine ranked Deloitte as one of the 100 Best Companies to Work For [65] and Bloomberg Business has consistently named Deloitte as the best place to launch a career. [66]

Deloitte, along with KPMG, PwC and PA Consulting Group were recognized among the UK's best companies to work for in 2017. [67]

Deloitte was named the #1 accounting firm for the tenth year in a row by Inside Public Accounting in August 2018. [68]

In 2017, Deloitte was ranked as one of the ten best places to work for paternity leave by Fatherly, an online resource for parenting news. [69]

Litigation and regulatory action

Adelphia Communications

The Securities and Exchange Commission announced on 26 April 2005 that Deloitte had agreed to pay $50 million to settle charges relating to Adelphia's 2000 financial statements. [70] [71] The settlement was later reported to be as high as $210m or $167.5m. [72] [73]

Canadian Bar Association

In September 2003, Deloitte reported to the Canadian Bar Association (CBA) that motor vehicle accident insurance claims for bodily injury had been declining since 1999 adjusted for inflation. This contradicted the government's and industry's argument that general damages for soft-tissue injury had to be capped at $4,000. Within hours of release, a member of Deloitte was communicating with Insurance Bureau of Canada without the knowledge of CBA (their client) and providing confidential information. The Institute of Chartered Accountants of Alberta found Deloitte guilty of unprofessional conduct and fined the firm $40,000. [74]

Livent

In proceedings arising from the insolvency of the former entertainment company Livent, in April 2014 its special receiver obtained judgment against Deloitte for $84,750,000 in the Ontario Superior Court of Justice, in relation to Deloitte's failure to exercise its duty of care with respect to the audit of Livent's financial statements during 19931998. [75] The ruling was upheld by the Ontario Court of Appeal in January 2016, [76] [77] [78] but in December 2017, the Supreme Court of Canada in Deloitte & Touche v Livent Inc (Receiver of) allowed an appeal in part, declaring that liability existed only in respect of Deloitte's negligence in conducting the audit for Livent's 1997 fiscal year, and accordingly reduced the amount of damages awarded to $40,425,000. [79]

Standard Chartered

In August 2012, Deloitte Financial Advisory Services (DFAS) publicly denied that as the official internal auditors for Standard Chartered, it helped the bank cover up money laundering operations related to Iran which were earning the bank significant profits by "intentionally omitting critical information". [80] DFAS paid the state of New York a $10 million settlement, was required not to take on new business for one year from designated New York banks, and was required to implement reforms in order to prevent similar problems in the future. The state regulator stated that there was no evidence DFAS intentionally helped Standard Chartered launder money. [81]

Serco Geografix Ltd.

On July 4, 2019, the Financial Reporting Council (FRC) fined Deloitte for its failure to properly audit the accounts of a Serco Group's subsidiary, Serco Geografix, in 2011 and 2012. The United Kingdom's watchdog fined Deloitte with a £4.2 million and additional £300,000 towards the costs of the investigation. [82] [83]

Deloitte's audit engagement partner Helen George was also fined £97,500. FRC stated that the two parties have been sanctioned for their failure to act in accordance with the fundamental principle of professional competence and due care. [84]

Controversies

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. [85] 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". [86] Public health officials criticised Deloitte's decision to conduct the research, as it added credibility to the tobacco industry's effort to undermine the Australian Government's plain cigarette packaging legislation. [87] [88]

E-mail hack

In September 2017, The Guardian reported that Deloitte suffered a cyberattack that breached the confidentiality of its clients and 244,000 staff, allowing the attackers to access "usernames, passwords, IP addresses, architectural diagrams for businesses and health information". Reportedly, Deloitte had stored the affected data in Microsoft's Azure cloud hosting service, without two-step verification. The attackers were thought to possibly have had access from as early as October 2016. [89] Brian Krebs reported that the breach affected all of Deloitte's email and administrative user accounts. [90] [91] A later report by The Wall Street Journal repeated Deloitte's statement that only a few clients were affected. Deloitte said that neither its services nor its clients' businesses were disrupted. Deloitte reportedly first noticed suspicious activity in April 2017. Deloitte said that no sensitive information was compromised and that its investigators were eventually able to read every email obtained by the hackers. [92]

The Guardian reported that client accounts compromised in the breach included, but were not limited to, the US Department of Defense, the US Department of Homeland Security, the US State Department, the US Department of Energy, mortgage companies Fannie Mae and Freddie Mac, the National Institutes of Health (NIH), and the US Postal Service. [93] Fannie Mae and Freddie Mac issued statements saying they were not affected by the attack and denied that any of their data was compromised. [94]

Deloitte said that it immediately contacted legal authorities and six clients. Deloitte also increased security measures on the advice of both internal and external experts. [95] As of October 2017, the New York attorney general's office was investigating the hack. [92]

Carillion

Deloitte had acted as internal auditor at construction and services giant Carillion before it went into liquidation in January 2018. The "excoriating" and "damning" ( The Guardian ) [96] final report of the Parliamentary inquiry into Carillion's collapse was published on 16 May 2018, and criticised Deloitte for its involvement in the company's financial reporting practices:

"Deloitte were responsible for advising Carillion’s board on risk management and financial controls, failings in the business that proved terminal. Deloitte were either unable to identify effectively to the board the risks associated with their business practices, unwilling to do so, or too readily ignored them." [97]

The select committee chairs (Frank Field and Rachel Reeves) called for a complete overhaul of Britain's corporate governance regime, accusing the big four accounting firms of operating as a "cosy club". [96] Deloitte said it was "disappointed" with the committees' conclusions regarding its role as internal auditors, but would take on board any lessons that could be learned from Carillion's collapse. [96]

Autonomy

Following Autonomy's 2011 sale to Hewlett-Packard, the British software company was accused of accounting improprieties that contributed to an $8.8 billion write-down of Autonomy's value. In May 2018, the UK-Based Financial Reporting Council launched disciplinary action against Deloitte, Autonomy's auditor at the time of the sale. Deloitte Partners who led the audit were accused of failing to correct false and misleading information filed with the FRRP, and otherwise failing to act with objectivity during the course of the audit. The FRC's action followed legal proceedings in the US that found former Autonomy executive Sushovan Hussain guilty of fraud earlier that month. [98]

Sponsorships

Deloitte LLP serves as the official professional services sponsor of the United States Olympic Committee since year 2009. [99] The UK member firm of Deloitte was a sponsor of the London 2012 Olympics [100] and the Royal Opera House. [101] The Canadian member firm was also the official professional services supplier for the 2010 Vancouver Winter Olympic Games [102] and 2010 Winter Paralympic Games. [103] In Asia, the Singapore member firm of Deloitte was a sponsor of the 2010 Summer Youth Olympics. [104] The Australian member firm of Deloitte is a Founding Partner of Invictus Games Sydney 2018, and a Principal from the firms Consulting practice is CEO of the not-for-profit entity delivering the Games. [105] [106]

Moreover, Deloitte sponsors many university sports teams and societies, such as Edinburgh University Hockey Club. [107] It also entered into a 3-year partnership with the Cambridge Union Society in November 2013. [108]

See also

Related Research Articles

Arthur Andersen LLP was an American holding company based in Chicago. Formerly one of the "Big Five" accounting firms,, the company had provided auditing, tax and consulting services to large corporations. By 2001, it had become one of the world's largest multinational companies.

The Big Four are the four biggest professional services networks in the world, offering audit, assurance services, taxation, management consulting, advisory, actuarial, corporate finance and legal services. They handle the vast majority of audits for public companies as well as many private companies.

Ernst & Young Multinational professional services network headquartered in London, England

Ernst & Young is a multinational professional services firm headquartered in London, England, United Kingdom. EY is one of the largest professional services firms in the world. Along with Deloitte, KPMG and PricewaterhouseCoopers (PwC), EY is considered one of the Big Four accounting firms. EY has recently shifted its historical business focus towards consulting. In particular, EY advanced its market presence in strategic consulting and entered into direct competition with what has been a traditional field of "Big Three" companies, namely Bain, McKinsey and BCG. By series of acquisitions and shift of market focus, EY expanded its market share in areas including operations services consulting, strategy services consulting, HR services consulting, financial services consulting & technology services consulting.

KPMG Multinational professional services and accounting company

KPMG is a multinational professional services network, and one of the Big Four accounting organizations, along with Deloitte, Ernst & Young (EY), and PricewaterhouseCoopers (PwC).

Financial statement formal record of the financial activities and position of a business, person, or other entity

Financial statements are formal records of the financial activities and position of a business, person, or other entity.

PricewaterhouseCoopers professional services networks

PricewaterhouseCoopers is a multinational professional services network with headquarters in London, United Kingdom. PwC ranks as the second largest professional services firm in the world and is one of the Big Four auditors, along with Deloitte, EY and KPMG.

Financial audit

A financial audit is conducted to provide an opinion whether "financial statements" are stated in accordance with specified criteria. Normally, the criteria are international accounting standards, although auditors may conduct audits of financial statements prepared using the cash basis or some other basis of accounting appropriate for the organisation. In providing an opinion whether financial statements are fairly stated in accordance with accounting standards, the auditor gathers evidence to determine whether the statements contain material errors or other misstatements.

Nobuzo Tohmatsu was an admiral in the Imperial Japanese Navy in World War II who went on to become an accountant and a namesake of the global auditing firm Deloitte Touche Tohmatsu, today the world's largest professional services company.

Consolidated financial statement

Consolidated financial statements - are the "Financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity", according to International Accounting Standard 27 "Consolidated and separate financial statements", and International Financial Reporting Standard 10 "Consolidated financial statements".

The Live Entertainment Corporation of Canada, better known as Livent, was a theatre production company based in Toronto, Ontario. Founded in 1989 by former Cineplex Odeon executives Garth Drabinsky and Myron Gottlieb, the company initially found success with its production of The Phantom of the Opera at its Pantages Theatre in Toronto. In 1993, they brought Kiss of the Spider Woman to Broadway, winning the Tony Award for Best Musical. They became known for lavish productions with their 1994 revival of Show Boat, and their ambitious 1998 original musical Ragtime.

Michael H. Sutton is a director of Krispy Kreme Corporation. Sutton was the Chief Accountant of the U.S. Securities and Exchange Commission from 1995 to 1998, and a director of American International Group from 2005 to 2009.

SyCip Gorres Velayo & Company is a Philippine multidisciplinary professional services firm.

William G. Parrett American businessperson

William G. Parrett is a senior manager who has served public, private, governmental, and state-owned clients worldwide. In October 2008, Parrett was elected to the board of directors of UBS AG and, in November 2014, to the Board of Directors of UBS Group AG. In May 2018, he stepped down from this role and is focussing on the position of President of UBS Americas Holding LLC.

An accounting network or accounting association is a professional services network whose principal purpose is to provide members resources to assist the clients around the world and hence reduce the uncertainty by bringing together a greater number of resources to work on a problem. The networks and associations operate independently of the independent members. The largest accounting networks are known as the Big Four.

Cathy Engelbert WNBA Commissioner

Catherine "Cathy" Engelbert is an American business executive and the first Commissioner of the Women's National Basketball Association (WNBA). Before joining the WNBA, she had been CEO of the U.S. member firm of the international professional services firm Deloitte.

Morison KSi

Morison KSi is a global association of professional service firms. The association has 158 member firms in 81 countries. Morison KSi's status as an association is in accordance with the International Federation of Accountants (IFAC) audit code and the EU Statutory Audit Directive 2006/43/(EC). Morison KSi is ranked by the International Accounting Bulletin as the 9th largest accounting association in the world. In January 2017, the combined revenue of all member firms was USD1.002 billion.

BDO Global international network of public accounting, tax, consulting and business advisory firms

BDO or Binder Dijker Otte is an international network of public accounting, tax, consulting and business advisory firms which perform professional services under the name of BDO. As of 2017 BDO has member firms in 162 countries, employs around 80,000 partners and staff in over 1,591 offices throughout the world, and is the fifth largest professional services network globally.

<i>Deloitte & Touche v Livent Inc (Receiver of)</i>

Deloitte & Touche v Livent Inc 2017 SCC 63 is a leading case of the Supreme Court of Canada concerning the duty of care that auditors have toward their clients during the course of a professional engagement.

References

  1. "About Deloitte". 2.deloitte.com. Retrieved 14 April 2016.
  2. "Deloitte Touche Tohmatsu Limited". Companies House. Retrieved 15 October 2018.
  3. "David Cruickshank, Global Chairman, DTTL". Deloitte. Retrieved 30 December 2015.
  4. "Deloitte Global CEO". Deloitte. Retrieved 28 October 2015.
  5. 1 2 3 4 5 6 7 8 "Deloitte marks its 10th consecutive year of growth". Deloitte. Retrieved 10 September 2019.
  6. "Contact us". Deloitte. Retrieved 10 October 2017.
  7. "Deloitte overtakes PwC as world's biggest accountant". The Telegraph. Retrieved 15 April 2017.
  8. 1 2 "Deloitte marks its 10th consecutive year of growth | Deloitte | Press release". Deloitte. Retrieved 10 September 2019.
  9. "America's Largest Private Companies". Forbes. 9 August 2017. Retrieved 28 June 2018.
  10. Jacqueline Heng; Dean Blackmore; Julie Short. "Market Share Analysis: Consulting Services, Worldwide, 2014 – Gartner". Gartner.
  11. "Kennedy Sees Global Consulting Markets Normalizing; Growth Rates Increasing Through 2016". Kennedy Consulting Research and Advisory.
  12. 1 2 3 4 5 6 7 8 9 10 11 "About Deloitte". Deloitte. Retrieved 2 October 2014.
  13. Deloitte & Co. Oxford University Press. 1959.
  14. Elijah Watt Sells, "The Accounting Hall of Fame", Fisher College of Business. Retrieved 2013-08-07.
  15. "A Simplified Family Tree for the Firm of Deloitte Haskins & Sells". Icaew.com. Retrieved 6 April 2017.
  16. 1 2 Deloitte Touche merger done The New York Times
  17. "Spicer & Oppenheim". ICAEW.com.
  18. "Deloitte Consulting, Page 6" (PDF). Wellesley.edu. Archived from the original (PDF) on 9 April 2011. Retrieved 10 October 2017.
  19. Deloitte buys Eclipse, ARN, 16 February 2000
  20. Suzanne Kapner (11 April 2002). "ENRON'S MANY STRANDS: THE ACCOUNTANTS; British Unit Of Andersen Is Defecting to Deloitte". New York Times. Retrieved 24 February 2010.
  21. "Canadian Unit to Join Deloitte". New York Times. 13 April 2002. Retrieved 24 February 2010.
  22. Ineum Consulting, Oracle.com, August 2008
  23. Bennett, James. "Deloitte expands in China (7 Apr 2005)". AccountancyAge.com. Retrieved 17 April 2017.
  24. Javers, Eamon (19 December 2016). "Accountants and spies: The secret history of Deloitte's espionage practice". CNBC. Retrieved 20 December 2016.
  25. BearingPoint to sell business units to Deloitte, PwC, Washington Business Journal, 24 March 2009
  26. Deloitte acquires Drivers Jonas, Financial Times, 21 January 2010
  27. Deloitte Expands Sustainability Offerings, Acquires ClearCarbon, DOMANI Archived 13 May 2016 at the Wayback Machine , Environmental Leader, 13 December 2010
  28. Deloitte Acquires Ubermind; Establishes Lead in the Mobile Revolution, Prnewswire.com, 4 January 2012
  29. "Confirmed: Deloitte buys Ubermind, looking to play a bigger role in mobile apps". GeekWire. Retrieved 2 October 2014.
  30. Deloitte Buys Recombinant to Expand Healthcare Analytics Mojo InformationWeek, 6 November 2012
  31. Deloitte announces the launch of ConvergeHEALTH, Deloitte.com, 20 February 2013
  32. "Deloitte Completes Acquisition of Monitor's Global Strategy Consulting Business". 11 January 2013. Retrieved 2 October 2014.
  33. "Monitor Company Group LP Files for Bankruptcy in Delaware". BusinessWeek. Retrieved 2 October 2014.
  34. "'Big 4' Accounting Firms Are Experimenting With Blockchain And Bitcoin". NASDAQ.com. 5 July 2017. Retrieved 9 July 2017.
  35. "Need to Know". Advertising Age . 7 March 2016. p. 4.
  36. Vranica, Suzanne (29 February 2016). "Deloitte Digital Buys Creative Agency Heat". The Wall Street Journal. Retrieved 21 December 2017.
  37. "Apple and Deloitte partner on 'Enterprise Next' service". CNET. Retrieved 5 November 2016.
  38. "Apple and Deloitte team up to accelerate business transformation on iPhone and iPad". Apple Newsroom. Retrieved 5 November 2016.
  39. "Apple just made a huge deal to push the iPhone into big businesses". Business Insider. Retrieved 5 November 2016.
  40. "Deloitte targets accelerated growth with additional €200m investment in the creation of North West Europe firm". Deloitte.com. Retrieved 10 October 2017.
  41. "PWC: History and milestones". Pwc.com. Retrieved 10 October 2017.
  42. "Ernst & Young launches rebrand plan". Accountancy Age. Retrieved 2 October 2014.
  43. "virat Deloitte". Deloitte. Retrieved 2 October 2014.
  44. "170,000 brand managers step ahead, as one". Deloitte Perspectives. Retrieved 2 October 2014.
  45. "Deloitte's brand gets a makeover". Deloitte. Retrieved 15 June 2016.
  46. "Deloitte and KPMG do not have license to operate in India". Economic Times. Retrieved 29 September 2018.
  47. Andrew Clark (20 September 2010). "Deloitte Touche Tohmatsu quits Swiss system to make UK its new legal home". The Guardian. Retrieved 20 September 2010.
  48. "IFAC Forum of Firms". IFAC. Retrieved 2 October 2014.
  49. "Deloitte faces double trouble in China". China Daily. Retrieved 2 October 2014.
  50. "Kelon scandal puts Deloitte in legal firing line". Scmp.com. Retrieved 9 November 2017.
  51. Anderlini, Jamil (22 April 2006). "Deloitte defends 'good job' at Kelon". South China Morning Post. Retrieved 13 November 2017.
  52. Elisabeth Rosenthal, An American Sickness: How Healthcare Became Big Business and How You Can Take It Back (New York: Penguin Press, 2017), pp. 33-35.
  53. "Kennedy Ranks Deloitte as the Top Global Health Care Consulting Practice", High Beam Research newsletter (22 April 2011).
  54. "Teachers. Start. Boycott-2995901.shtml LAUSD teachers start boycott". Dailytrojan.com. Retrieved 16 November 2016.[ permanent dead link ]
  55. "Los Angeles school district SAP implementation still broken". ZDNet. 8 October 2007. Retrieved 2 October 2014.
  56. "Update: LAUSD payroll problems stabilized". ZDNet. 20 January 2008. Retrieved 2 October 2014.
  57. "California court officials, judges spar over costly computer system". Sacbee.com. Archived from the original on 13 April 2010. Retrieved 10 October 2017.
  58. Chris Kanaracus (28 March 2012). "California Scraps Massive Courts Software Project". PCWorld. Retrieved 2 October 2014.
  59. Doward, Jamie (3 November 2013). "Deloitte promotes Mauritius as tax haven to avoid big payouts to poor African nations". Theguardian.com. Retrieved 9 November 2017.
  60. "How The U.S. Government Can Accelerate The Impact Economy". Forbes. 27 June 2013. Retrieved 9 March 2018.
  61. "Worldwide locations directory". www2.deloitte.com. Deloitte global website. Retrieved 1 October 2018.
  62. "Deloitte, KPMG have no licence to do audit work in India". Economic Times. 16 January 2009. Retrieved 29 September 2018.
  63. Mistry, Sharad (19 March 1998). "Deloitte Touche Tohmatsu formalises tie-up with CC Chokshi". The Indian Express. Retrieved 29 September 2018.
  64. "SFIO names KPMG arm in Reebok chargesheet". The Indian Express. 29 September 2018. Retrieved 29 September 2018.
  65. "Fortune Magazine 2019 100 Best Companies to Work For". Fortune .
  66. Lindsey Gerdes (3 September 2009). "The Best Places to Launch a Career". Bloomberg Business.
  67. "PwC, Deloitte, KPMG and PA among top 25 UK companies to work for". Consultancy.uk. Retrieved 30 May 2017.
  68. "The 2018 INSIDE Public Accounting Top 100 Firms" (PDF). Inside Public Accounting. August 2017. Retrieved 22 August 2017.
  69. Peter Jones (7 August 2017). "The 10 best places for dads to work in 2017". USA Today. Retrieved 13 September 2017.
  70. "MLS Canada - Canadian Real Estate Property Listing". Financegates.com. Archived from the original on 21 May 2013. Retrieved 9 November 2017.
  71. "SEC Charges Deloitte & Touche for Adelphia Audit". Sec.gov. Retrieved 9 November 2017.
  72. "Deloitte and Banks to Pay $455 Million to Adelphia Investors". The New York Times . 9 December 2006. Retrieved 9 November 2017.
  73. Johnson, Sarah (6 August 2007). "Deloitte to Pay $167.5M in Adelphia Case -". 2.cfo.com. Retrieved 9 November 2017.
  74. "Accountant penalized for info leak". Canada.com. 13 January 2008. Archived from the original on 14 February 2012. Retrieved 15 May 2018.
  75. Drew Hasselback (6 April 2014). "Livent auditor Deloitte ordered to pay $84.8-million for failing detect fraud". Financial Post ., discussing Livent Inc v Deloitte & Touche LLP 2014 ONSC 2176 (4 April 2014)
  76. Perkel, Colin (8 January 2016). "Court upholds $118-million award against negligent Livent auditor Deloitte". Financial Post., discussing Livent Inc v Deloitte & Touche 2016 ONCA 11 (8 January 2016)
  77. Joseph, Patricia (19 January 2016). "Livent v Deloitte: Has The Fat Lady Finally Sung?". thecourt.ca. Osgoode Hall Law School. Archived from the original on 25 January 2016.
  78. Buckstein, Jeff (March 2016). "Livent ruling seen as game changer for auditing duties". The Bottom Line. Archived from the original on 6 March 2016.
  79. Deloitte & Touche v Livent Inc (Receiver of) 2017 SCC 63 (20 December 2017)
  80. Standard Chartered: Deloitte rejects US claims, The Telegraph, 7 August 2012
  81. Freifeld, Karen (18 June 2013). "Deloitte to pay NY $10 million for misconduct over Standard Chartered". Reuters. Retrieved 5 December 2017.
  82. "Watchdog imposes $5.8 million fines on Deloitte, partner for audit failures". Reuters. Retrieved 3 July 2019.
  83. "Deloitte fined £6.5m over Serco audit misconduct". Financial Times. Retrieved 3 July 2019.
  84. "Deloitte fined £4.2m over Serco tagging scandal". The Guardian. Retrieved 4 July 2019.
  85. Australian Customs and Border Protection response to Media Watch ABC, 10 June 2011
  86. Joe Hildebrand News.com.au, 12 July 2011
  87. Professor Simon Chapman Archived 9 August 2011 at the Wayback Machine ABC Online, 6 July 2011
  88. Professor Owen Carter, Sydney Morning Herald , 22 March 2012
  89. Hopkins, Nick (25 September 2017). "Deloitte hit by cyber-attack revealing clients' secret emails". Theguardian.com. Retrieved 10 October 2017.
  90. "Source: Deloitte Breach Affected All Company Email, Admin Accounts — Krebs on Security". krebsonsecurity.com. Retrieved 10 October 2017.
  91. "Security News This Week: The Deloitte Breach Was Worse Than We Thought". Wired.com. Retrieved 9 November 2017.
  92. 1 2 Rapoport, Michael (13 October 2017). "New York Investigates Deloitte Cyberbreach". The Wall Street Journal.
  93. Hopkins, Nick (10 October 2017). "Deloitte hack hit server containing emails from across US government". Theguardian.com. Retrieved 10 October 2017.
  94. Berry, Kate (10 October 2017). "Fannie, Freddie not affected by Deloitte breach, GSEs say". American Banker. Retrieved 6 December 2017.
  95. Sandle, Paul; Finkle, Jim. "Deloitte hacked, says 'very few' clients affected" (25 September 2017). Reuters. Retrieved 6 December 2017.
  96. 1 2 3 Davies, Rob (16 May 2018). "'Recklessness, hubris and greed' – Carillion slammed by MPs". Guardian. Retrieved 16 May 2018.
  97. Carillion: Second Joint report from the Business, Energy and Industrial Strategy and Work and Pensions Committees of Session 2017–19 (PDF). London: House of Commons. 2018. p. 91. Retrieved 16 May 2018.
  98. Fildes, Nic. "UK watchdog acts against Deloitte over Autonomy accounts". Financial Times. Retrieved 3 April 2019.
  99. "Deloitte renews sponsorship of U.S. Olympic and Paralympic Teams". United States Olympic Committee . Retrieved 27 October 2015.
  100. "Deloitte becomes first London 2012 tier two sponsor". Brandrepublic.com. Retrieved 9 November 2017.
  101. "Deloitte Ignite". Deloitte.com. Retrieved 10 October 2017.
  102. "Vancouver 2010 Winter Olympics - results & video highlights". Vancouver2010.com. 13 October 2016. Retrieved 16 November 2016.
  103. "Vancouver 2010 Winter Olympics - results & video highlights". Vancouver2010.com. 13 October 2016. Retrieved 16 November 2016.
  104. "Deloitte was official partner of inaugural YOG in 2010". Agri-biz.com. Archived from the original on 6 October 2014. Retrieved 2 October 2014.
  105. "Invictus Games Sydney 2018 Corporate Partners". Invictus Games Sydney 2018. 10 July 2018.
  106. "Deloitte". Deloitte. 10 July 2018. Retrieved 10 July 2018.
  107. "Deloitte – Official Sponsor of EUMHC". Euhc.co.uk. Archived from the original on 14 August 2012. Retrieved 2 October 2014.
  108. Martha Elwell (14 November 2013). "The Union by Deloitte". Varsity Online. Retrieved 2 October 2014.