KPMG ACCOUNTING

KPMG Accounting System

KPMG Accounting System

Introduction

KPMG is one of the world's largest business advisory firms with over 90,000 staff operating from 812 cities in 142 countries. Building on the traditional activity as auditors, KPMG have expanded their role into becoming a comprehensive consultancy firm. In addition to auditing and accounting services, KPMG offers national and international tax services, management consulting, corporate finance advice and corporate recovery services. KPMG's audit, tax and consulting professionals work together, sharing their collective knowledge and expertise to provide integrated business solutions for clients.

KPMG has set out to become the world's leading service provider. Our vision is that we will be the recognised global leader of professional service firms by creating an invigorating work environment for our people, delivering innovative advisory services to our clients on a global basis and generating superior financial results.

KPMG serves thousands of clients around the world representing commercial, financial and government interests in virtually every sector of the economy. These clients include over 1,500 of the world's 6,000 largest corporations- many more than any other firm. KPMG also provides medium sized enterprises, including non-profit entities, with high quality services, tailored to their specific needs. Throughout the world, the guiding philosophy of KPMG is to provide our clients with the highest quality services. The activities are subject to rigorous quality control procedures and we operate on a co-ordinated international basis to make optimum use of our considerable resources. (Cook, Colin and Don Spitzer, 2008 “Pp. 56-59.)

KPMG has structured itself into international industry groups that provide focused knowledge gained in the client's own industry. The industry group structure ensures most powerful contacts to major industries in the various sectors all across Europe and world-wide. KPMG's major industry groups are:

Government & Non-Profit Making Organisations

Banking and Finance

Insurance

Information, Communication & Entertainment

Energy, Environment & Natural Resources

Transportation

Health Care & Life Sciences

Manufacturing

Wholesale, Retail & Distribution

Building Construction and Real Estate

Background

PEST Analysis

Political

Politically making strategic and business objectives explicit, there is a likelihood of overlooking significant risks will be reduced. The link between strategy and business planning is therefore a critical risk management process which is often overlooked. _ Risk to delivering performance

Economic

The Board should formally identify the significant business risks (or review and endorse the process by which they have been identified) and be able to demonstrate that they are aware of such risks. Without a clear focus on the significant risks to strategic objectives, the review of internal controls will be compromised. _ Performance appetite - For each identified risk, the Board should consider the probability of the risk occurring and the impact its crystallisation would have on the business. Controls identified and implemented should be appropriate to maintain the key business risks within the Board's defined risk tolerance levels. Cost/benefit considerations apply here. _

Social

Demonstration of performance and risk effectiveness - The Board should be periodically provided with an assessment of the effectiveness of control. However, a balance must be struck between direct involvement by the directors and a high level review in which some areas of responsibility are ...