Deloitte

Deloitte

Deloitte Touche Tohmatsu Limited
UK private company, limited by guarantee
Industry Professional services
Founded London, U.K. (1845)
Founder William Welch Deloitte
Headquarters 30 Rockefeller Plaza,
New York City, New York, U.S.A.
Area served
Worldwide
Key people
Punit Renjen (CEO)[1]
Services Audit
Tax
Consulting
Financial Advisory
Enterprise Risk
Legal
Revenue Increase US$ 35.2 billion (2015)[2]
Number of employees
225,400 (2015)[2]
Website deloitte.com

Deloitte Touche Tohmatsu Limited , commonly referred to as Deloitte, is a British multinational professional services firm headquartered in New York City in the United States.[3]

Deloitte is one of the "Big Four" and the second largest professional services network in the world by revenue and largest by the number of professionals. Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services with more than 225,400 professionals in over 150 countries.[4] The company currently has a total of 46 global member firms and in FY 2015, earned a record $35.2 billion USD in revenues.[2]

As per reports in 2012, Deloitte had the largest number of clients amongst FTSE 250 companies in the UK[5] and in 2015, Deloitte currently has the highest market share in auditing among the top 500 companies in India.[6]

Deloitte has been ranked number one in consulting by Gartner[7] and for fourth consecutive year Kennedy Consulting Research and Advisory ranks Deloitte number one in both global consulting and management consulting.[8] In 2015, Fortune magazine ranked Deloitte as one of the 100 'most exceptional' companies[9] and Bloomberg Business has consistently named Deloitte as the best place to launch a career.[10]

Contents

  • History 1
    • Early history 1.1
    • Recent history 1.2
  • Name and branding 2
  • Global structure 3
  • Services 4
  • Staff and offices 5
  • Criticisms 6
  • Sponsorship 7
  • See also 8
  • References 9
  • External links 10

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, namely the Great Western Railway.[11] He went on to open an office in New York in 1880.[11]

William Welch Deloitte

In 1896, Charles Waldo Haskins and Elijah Watt Sells formed Haskins & Sells in New York.[11] It was later described as "the first major auditing firm to be established in the country by American rather than British accountants."[12]

In 1898, Broad Street in New York.[11] 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 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.[11]

Sir George Alexander Touche, 1st Baronet, founded one of Deloitte's predecessor firms.

In 1947,


  • Official website

External links

  1. ^
  2. ^ a b c d
  3. ^ "Contact Us. " Deloitte. Retrieved on 25 November 2014.
  4. ^ Deloitte grows for fourth consecutive year, reporting US $32.4 billion in revenue Deloitte. Retrieved on 19 September 2012.
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  11. ^ a b c d e f g h i j k
  12. ^ Elijah Watt Sells, "The Accounting Hall of Fame", Fisher College of Business. Retrieved 2013-08-07.
  13. ^ a b Deloitte Touche merger done The New York Times
  14. ^ Deloitte Consulting, Page 6
  15. ^ Deloitte buys Eclipse, ARN, 16 February 2000
  16. ^
  17. ^
  18. ^ Ineum Consulting at Oracle.com, August 2008
  19. ^ BearingPoint to sell business units to Deloitte, PwC, Washington Business Journal, 24 March 2009
  20. ^ Deloitte acquires Drivers Jonas, Financial Times, 21 January 2010
  21. ^ Deloitte Expands Sustainability Offerings, Acquires ClearCarbon, DOMANI, Environmental Leader, 13 December 2010
  22. ^ Deloitte Acquires Ubermind; Establishes Lead in the Mobile Revolution at prnewswire.com, 4 January 2012
  23. ^
  24. ^ Deloitte Buys Recombinant to Expand Healthcare Analytics Mojo InformationWeek, 06 November 2012
  25. ^ Deloitte announces the launch of ConvergeHEALTH Deloitte, 20 February 2013
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  28. ^ PWC: History and milestones
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  40. ^ ActionAid in Africa
  41. ^ Deloitte settles in Adelphia scandal
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  44. ^ Teachers. Start. Boycott-2995901.shtml LAUSD teachers start boycott
  45. ^
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  47. ^ California court officials, judges spar over costly computer system
  48. ^
  49. ^ Australian Customs and Border Protection response to Media Watch ABC, 10 June 2011
  50. ^ Joe Hildebrand News.com.au, 12 July 2011
  51. ^ Professor Simon Chapman ABC Online, 6 July 2011
  52. ^ Professor Owen Carter, Sydney Morning Herald, 22 March 2012
  53. ^
  54. ^ Standard Chartered: Deloitte rejects US claims, The Telegraph, 7 August 2012
  55. ^ "As many as 300,000 jobless affected by state software snags", Los Angeles Times, 22 October 2013
  56. ^
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  58. ^ Deloitte becomes first London 2012 tier two sponsor
  59. ^ Deloitte Ignite
  60. ^ Vancouver 2010 Paralympic Winter Games
  61. ^ Deloitte named Official Professional Services Provider to Vancouver 2010 Winter Games
  62. ^
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References

See also

Moreover, Deloitte sponsors many university sports teams and societies, such as Edinburgh University Hockey Club.[63] It also entered into a 3-year partnership with the Cambridge Union Society in November 2013.[64]

Deloitte serves as the official professional services sponsor of the United States Olympic Committee since year 2009.[57] The UK member firm of Deloitte was a sponsor of the London 2012 Olympics[58] and the Royal Opera House.[59] The Canadian member firm was also the official professional services supplier for the 2010 Vancouver Winter Olympic Games[60] and 2010 Winter Paralympic Games.[61] In Asia, the Singapore member firm of Deloitte was a sponsor of the 2010 Summer Youth Olympics.[62]

Sponsorship

  • ActionAid – 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.[40]
  • Adelphia Communications Corporation – 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.[41]
  • Guangdong Kelon Electrical Holdings Company Limited – Investors have claimed that there was a failure to alert them to the company's poor financial position.[42]
  • 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.[43]
  • 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 all.[44] As of 31 December 2007, LAUSD had incurred a total of $140 million in payments to Deloitte to get the system working properly.[45] 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.[46]
  • 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.[47] California's Judicial Council terminated the project in 2012 citing actual deployment costs associated with the project and California's budget concerns.[48]
  • 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.[49] 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".[50] 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.[51][52]
  • Canadian Bar Association – In September 2003, Deloitte provided a report to the CBA that motor vehicle accident insurance claims for bodily injury had been declining since 1999 when taking inflation into account, which refuted 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.[53]
  • Standard Chartered Iranian Money Laundering – In August 2012, Deloitte was forced to publicly deny that as the official internal auditors for Standard Chartered, it helped the bank cover up suspected money laundering operations which were earning the bank significant profits by "intentionally omitting critical information".[54]
  • Employment Development Department – Snags in a system implemented by Deloitte resulted in delayed payments to hundreds of thousands of unemployed in the state of California.[55]
  • On 17 June 2014 Booz Allen Hamilton sued Deloitte, claiming the firm stole proprietary information in order to 'lift out' a specialized team of Booz employees.[56]

Disputes involving Deloitte include:

Criticisms

Notable Deloitte office buildings
London, UK 
Oslo, Norway 
De Haagsche Zwaan, The Hague, The Netherlands 
Copenhagen, Denmark 
Parramatta, Sydney, Australia 
Vienna, Austria 
Los Angeles, USA 
Budapest, Hungary 
Torre Picasso, Madrid, Spain 
Deloitte Centre, Auckland, New Zealand 

Deloitte offers its staff a variety of career models to choose from based on their preferences, strengths, geographic location and business need. These career models also vary for each function and in some cases across different member firms around the world. Traditional titles for Consulting are Analyst, Consultant, Senior Consultant, Manager, Senior Manager, Director and Partner. In some of the more assurance centric functions the titles Consultant and Senior Consultant are substituted for Analyst and Senior Analyst. Many parts of Deloitte also offer an alternate career path for people that choose to pursue deep specialisation in their chosen fields but may not have Partnership aspirations. Titles for these position differ around the world but may include Specialist Senior, Specialist Master and Specialist Leader.

Staff and offices

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). The 2014 revenue shares are listed in parentheses.[2]

Services

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[33] which is network of accounting firm networks.

30 Rockefeller Center is the location of Deloitte's Global Head Office.

For many years, the organization and its network of member firms were legally organized as a Swiss Verein (the equivalent to an unincorporated association, like the Associated Press in the United States). 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.[32]

Global structure

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.[31]

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.[30]

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 Bill Parrett, the then-CEO of DTT, and led by Jerry Leamon, the global Clients and Markets leader.[29]

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).[28] 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 organizations.

Current Deloitte branding displayed at the Toronto office

Name and branding

On 11 January 2013, Deloitte acquired substantially all of the business of Monitor Group,[26] the strategy consulting firm founded by Harvard Business School professor Michael Porter, after Monitor filed for bankruptcy protection.[27]

In November 2012, Deloitte acquired Recombinant Data Corporation, a company specializing in data warehousing and clinical intelligence solutions, and launched Recombinant by Deloitte.[24] In February 2013 Recombinant by Deloitte merged with an internal informatics unit (Deloitte Health Informatics) and launched ConvergeHEALTH by Deloitte.[25]

In January 2012, Deloitte announced the acquisition of Übermind, Inc., an innovative mobile agency.[22] The acquisition is Deloitte's first entrance into the mobile application field.[23]

In 2011, Deloitte acquired DOMANI Sustainability Consulting and ClearCarbon Consulting in order to expand its sustainability service offerings.[21]

In 2009, Deloitte purchased the North American Public Service practice of BearingPoint (formerly KPMG Consulting) after it filed for bankruptcy protection.[19] The firm also took over the UK property consultants Drivers Jonas in January 2010.[20]

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.[16][17] The spinoff of Deloitte France's consulting division led to the creation of Ineum 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.[15]

In 1995, the partners of Deloitte & Touche decided to create Deloitte & Touche Consulting Group (now known as Deloitte Consulting).[14]

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 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 to reflect the contribution from the Japanese firm,[11] as well as agreements to use both of the names Deloitte and Touche.

Recent history

In 1989, Deloitte Haskins & Sells 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).[13] Some member firms of Touche Ross also rejected the merger with Deloitte Haskins & Sells and merged with other firms.[13]

He led the expansion of Touche Ross in that era. [11].Financial Accounting Standards Board In 1972 Robert Trueblood, Chairman of Touche Ross, led the committee responsible for recommending the establishment of the [11] formed Tohmatsu Aoki & Co, a firm based in Japan that was to become part of the Touche Ross network in 1975.Nobuzo Tohmatsu In 1968 [11] In 1960, the firm was renamed Touche, Ross, Bailey & Smart, becoming Touche Ross in 1969.[11]