As one of the Big 4, KPMG works with some of the largest clients in the world. But which ones?
I spent hours researching and found that Wells Fargo, Pfizer, PepsiCo, Citigroup, and Accenture are some of the biggest clients of KPMG. It has been serving as their independent auditor for the past few years.
Some other big companies on the list of KPMG clientele are:
- American Airlines Group
- Occidental Petroleum Corporation
- Yum! Brand Inc
- FMC Corporation
In this post, I’ll reveal:
- 10 of KPMG’s biggest clients ranked by their size
- Give you an overview of the companies and the revenue they’ve generated over the years
1. Wells Fargo and Company
Wells Fargo and Company is a multinational financial service corporation founded in 1852. It provides investment, mortgage, banking, and other services and has four segments, including:
- Wealth and Investment Management
- Commercial Banking
- Consumer Banking and Lending
- Corporate and Investment Banking
Wells Fargo selected KPMG as its independent auditor for 2022 after careful consideration by the Audit Committee. (Source)
When making this decision, the committee considered these factors:
- The expertise of KPMG in the financial service industry and its knowledge of systemically important financial institutions (G-SIFIs)
- Audit effectiveness for the company
- External data on the audit quality and performance
Not only that, but (to be frank) Wells Fargo also found that KPMG’s audit fees are much more reasonable compared to other firms. (Source)
2. Pfizer Inc.
Pfizer Inc. is a global research-based biopharmaceutical company. These apply science to develop pharmaceuticals, vaccines, and healthcare products.
The company usually hires KPMG as its independent registered public accounting firm to audit its financial statements. They will also assure the shareholders and stakeholders about their accuracy.
Its a yearly thing! Even last year, Pfizer held its Annual Meeting of Shareholders, who ratified the selection of KPMG as its independent auditor for the next year.
This confirmed that they have confidence in KPMG’s ability to provide reliable service for the pharmaceutical company. (Source)
PepsiCo is the 2nd largest food/beverage company globally. They produce various products, such as Pepsi, Quaker Oats, Muscle Milk, Gatorade, Frito-Lay, and others. (Source)
This company has a long-standing relationship with KPMG. They have been hiring them as an independent auditor since 1990.
KPMG is responsible for auditing the Consolidated Financial Statements of PepsiCo. They ensure the reporting is:
- in compliance with the standards and regulations. (Source)
The shareholders then rely on this report to assess the reliability of PepsiCo’s financial information.
Citigroup Inc. is a US-based multinational financial services corporation and investment back. It is headquartered in New York City and was formed after the merger of Citicorp and Travelers Group. (Source)
KPMG has a history of providing services to Citigroup. They have been their independent auditor since 1969.
In fact, KPMG audited the effectiveness of Citigroup’s internal control over financial reporting last year. During the audit process, it communicated the audit matters to the Audit Committee of the Board of Directors of the company.
These matters were related to the accounts or disclosures of the Consolidated Financial Statements and included complex, challenging, and subjective judgments. (Source)
This communication of the audit matters to the committee is a standard practice in auditing and helps with designing a transparent financial report.
5. Accenture plc
Accenture is an international consulting and professional services firm that offers:
- technology services
- operations services to its clients. (Source)
The firm made headlines in the financial world in 2002 as it decided to entrust its global audit to KPMG.
Accenture made this decision after a rather unusual circumstance involving its previous auditor, PwC.
It requested the audit firm to step down from its role because it could not provide them with a clear timeline for the sale of its consulting business.
The situation left Accenture with two major options within the Big 4 companies, namely EY or KPMG, to consider as a new audit partner. (Source)
Long story short, Accenture selected the latter, and since then, KPMG has been auditing its financial statements and issuing its attestation reports.
According to Accenture, “KPMG has served as our auditor since 2002, and we believe that the continued retention of KPMG is in the best interests of the Company and its shareholders.” (Source)
The table below will give you an overview of how much KPMG charges as fees from Accenture for its services:
6. American Airlines Group
In 2013, the merger between US Airways Group, Inc. and American Airlines Group or AMR Corporation significantly impacted their choice of independent registered public accounting firms.
Prior to this, EY was serving as the principal accountant to audit and assess the financial statements of AMR corporation. At the same time, KPMG was working with US Airways Group.
However, after the merger, there was a need to streamline the auditing process for the newly formed American Airlines Group. So, the Audit Committee of the Board of Directors of the new corporation began the selection process to choose a single registered accounting firm.
They approved the appointment of KPMG for the auditing of the financial statements for AAG and its subsidiaries and terminated EY. (Source)
So, after the end of the fiscal year 2013, KPMG started serving AAG as the independent registered public accounting firm. They are still working in this role to this day.
This is evident from the Annual Report of American Airlines Group released last year. (Source)
7. Occidental Petroleum Corp
KPMG’s role as an independent auditor for various companies has been significant over the years.
One notable example is its partnership with Occidental Petroleum Corporation, the largest multinational oil and natural gas exploration and production company.
In March 2002, the corporation decided to replace Arther Anderson, LLP, and appoint KPMG as its independent auditor. (Source)
This move indicated the trust of Occidental Petroleum Corp in KPMG’s auditing capabilities. It marked the start of their professional partnership.
Since that decision, KPMG has continued to serve OPC as its independent auditor.
This year, the auditing firm issued a report on the internal control over the financial reporting of the corporation. (Source)
This shows the ongoing commitment of KPMG to assess and ensure the integrity of the OPC financial reporting process and internal controls.
8. Halliburton Company
Halliburton is a global company responsible for hydraulic fracturing operations worldwide.
It has a close connection with KPMG since December 31, 2002.
This partnership revolves around the auditing of the financial statements, books, and records of Halliburton.
The company decided to hire KPMG after its Audit Committee and Board of Directors approved its selection for this year.
KPMG provides written disclosures and letters to the Audit Committee, which the Public Company Accounting Onsight Board requires. The committee also discussed different company matters needed by Auditing Standards 1301. (Source)
9. Yum! Brands, Inc.
Yum! Brands, Inc. also has a longstanding relationship with KPMG LLP.
The consulting firm has served as its independent auditor since 1997.
This partnership is crucial for ensuring the accuracy and reliability of the company’s financial statements.
Besides auditing the Consolidated Financial Statements, KPMG also assesses the effectiveness of the internal controls over the financial reporting of Yum! It then documents the findings and assessments in its official report, “Annual Report in Form 10-K.”
KPMG usually charges a very nominal fee from Yum! Brands for its services. In fact, last year, the auditing and consulting firm billed it $7,411,000 of total fees. (Source)
This partnership between the two companies is marked by a commitment to maintaining the highest financial reporting standards, transparency, and compliance with regulatory requirements.
10. FMC Corporation
Since 1928, FMC has entrusted KPMG with the important role of working as its independent auditor. This extended partnership highlights the mutual trust that both companies have in one another.
The main aspect of the role of KPMG as FMC’s auditor is to access and validate the accuracy of its financial reporting. This holds huge importance for the corporation, its stakeholders, shareholders, and the board of financial committee.
But that’s not all!
This year, KPMG is tasked with evaluating the effectiveness of the internal control over the financial reporting of FMC to give the stakeholders confidence in its reliability of financial data.
In the end, here is the table below that will show you the ranking of these KPMG clients by size:
|Company||Size (Revenue in Billion)|
|Wells Forgo and Company||$100.72|
|American Airlines Group||$48.97|
|Occidental Petroleum Corp||$36.6|
|Yum! Brands, Inc.||$6.84|
In this detailed article, I’ve shed light on 10 of KPMG’s biggest clients who have appointed it as their independent registered public accounting firm.
The partnerships between KPMG and these companies show the trust of the clients in its expertise and commitment to delivering quality audit services.
You may have noticed that the dedication of KPMG to maintain the highest standard of professional excellence is reflected in these long-lasting client relationships.