Search Results for: kpmg

KPMG Study: Women Execs Say They Must Adjust Leadership Style to Advance

A majority of executive women say they must both change their leadership styles and be more adaptable than their male counterparts in order to lead successfully and advance in their careers, according to Big 4 firm KPMG.

“Advancing the Future of Women in Business: A KPMG Women’s Leadership Summit Report” polled 550 executive women who are one to two career steps away from the C-suite and have participated in the KPMG Women’s Leadership Summit.

KPMG U.S. Chairman and CEO Lynne Doughtie says, “It’s important for organizations everywhere to gain a more thorough understanding of the specific challenges women on the verge of breaking into the C-suite face. Our latest study provides valuable insights into these challenges. We hope it inspires women to aim high and lead with purpose.”

Key findings of the study include:

  • 66% say they must change their leadership styles more than their male counterparts as they rise to higher levels within an organization.
  • 81% believe that women must be more adaptable in situations than men in order to lead successfully and advance in their careers.
  • Because of feedback like being “too bossy or demanding,” “not aggressive enough,” “not collaborative enough,” and “too direct,” 58% of women surveyed say they change their leadership style to combat such perceptions.
  • 49% of executive women identify most with an authentic leadership style but struggle to define how much authenticity is too much. Women executives believe their authenticity must decrease as they rise in the ranks.
  • 58% of women executives surveyed believe a transformational leadership style is needed to reach the C-Suite.

The women executives included in the in-depth survey represent a range of industries across more than 150 of the world’s leading organizations and were nominated by their CEOs to attend the Summit. Download the full report.

More news from KPMG

Using Stolen PCAOB Data to Cost KPMG $50 Million

Big 4 accounting firm KPMG LLP will pay $50 million to settle SEC allegations that it altered past audit work after receiving stolen information from the PCAOB, which the SEC oversees, Bloomberg reported.

According to a June 17 statement, KMPG admitted wrongdoing and agreed to hire an independent consultant to review its internal controls. “KPMG’s ethical failures are simply unacceptable,” SEC Chairman Jay Clayton said in the statement. “The resolution the enforcement division has reached holds KPMG accountable for its past failures and provides for continuing, heightened oversight to protect our markets and our investors.”

The fine stems from what was called a “steal the exam” scheme, from 2015 to 2017, in which KPMG professionals and former PCAOB employees worked together to help the firm, which had suffered a high rate of deficiencies. In the end, six KPMG professionals were dismissed after an investigation found they tried to obtain confidential information that would reveal which audits the PCAOB planned to review in its annual inspections. “With the data, the former employees oversaw a program to revise certain audits to reduce the likelihood government inspectors would find shortfalls,” Bloomberg reported.

The investigation resulted in January 2018 criminal charges against three former PCAOB officials, who went on to work for KPMG, of stealing information tied to PCAOB exams.

In an email statement, a company spokesperson said KPMG has learned important lessons and is a stronger firm because of steps taken to improve its culture, governance and compliance program. The SEC says its probe is continuing.

More news from KPMG

Tim Forstad Named Minneapolis MP for KPMG

Tim Forstad

Tim Forstad

Big 4 firm KPMG has announced that the leader of its audit practice in Minneapolis, Tim Forstad, has been named the new MP of the 500-person office, replacing George Kehl, who is retiring.

Forstad had served as PIC of the audit practice in Minneapolis and Des Moines for the past two years. He’s been a partner in KPMG since 1998 and has worked in San Francisco, Taipei and Amsterdam. His expertise is in audit and SEC services for food and consumer product companies.

“I am excited to lead a talented and dedicated group of professionals who have the skills and expertise to help clients solve a broad range of audit, tax and advisory-related issues like acquisitions, restructurings, business transformations and many other issues,” Forstad said in a statement.

Over the past nine years, KPMG’s Minneapolis has grown from 336 to more than 500 employees.

“Tim is a respected leader and seasoned audit professional whose global industry expertise and strong local business connections make him ideal for the role,” said John Kunasek, KPMG’s vice chairman of clients and markets, in a statement.

More news from KPMG

Former KPMG Partner, PCAOB Staffer Found Guilty of Inspection Scheme

A former KPMG partner and a former PCAOB employee found guilty on March 11 of taking part in a scheme to give confidential information to the Big 4 firm to help it pass inspections, according to Reuters.

KPMG’s David Middendorf and the PCAOB’s Jeffrey Wada were both convicted of wire fraud and conspiracy to commit wire fraud by a jury in federal court in Manhattan. They were both acquitted of one count, conspiracy to defraud the U.S. government.

Middendorf’s lawyer said in an email to Reuters that they were disappointed with the result and would appeal. A lawyer for Wada declined to comment.

The case emerged from what’s been termed a “steal the exam” scheme that resulted in the dismissal of six KPMG professionals who tried to obtain confidential information that would reveal which audits the PCAOB planned to review in its annual firm inspections.

The PCAOB reports problems revealed in its audit inspections to the SEC. Prosecutors say Wada leaked confidential information about upcoming PCAOB inspections to people at KPMG, including Middendorf, between 2015 and 2017. Also charged was Cynthia Holder and Brian Sweet, two former PCAOB staffers who joined KPMG during that period, bringing confidential information with them to their new jobs. Wada was angling to make a similar move, according to prosecutors, Reuters reported.

Former KPMG executive Thomas Whittle was also charged. Holder, Sweet and Whittle all pleaded guilty before trial.

WSJ: Former Partner at KPMG Faces Trial in PCAOB Scandal

An ex-partner at Big 4 firm KPMG faces trial Monday for his part in an effort to obtain confidential information that would reveal which audits the PCAOB planned to review in its annual firm inspections.

Prosecutors have termed the scandal a “steal the exam” scheme, as it would give KPMG more time to prepare for the inspections, the Wall Street Journal reports. The PCAOB inspections are seen as a report card on a firm’s audit performance. KPMG, whose audits of GE and Wells Fargo were widely criticized, had not performed well on past inspections.

David Middendorf, who was fired as a partner in 2017, is charged with conspiracy and wire fraud in federal court in Manhattan, as is Jeffrey Wada, a former PCAOB inspections leader. They have pleaded not guilty. Middendorf had served as the firm’s national MP for audit quality and professional practice.

The PCAOB says two yearly inspections were compromised by KPMG’s advance knowledge.

It replaced some KPMG audits it initially reviewed with new ones, which had “a much higher rate of problems, illustrating the extent to which the advance access to information could have helped KPMG,” the Journal reported.

The trial, expected to last about four weeks, will include testimony from PCAOB and SEC officials.

KPMG Moves into Small Business Tax and Accounting Services with Spark

Zach Olson

New York-based KPMG LLP (FY17 net revenue of $9 billion) has launched KPMG Spark, a tax accounting solution for small and mid-sized businesses.

The Big 4 firm says KPMG Spark “blends innovative technology, intelligent automation and ‘human in the loop’ personalized service” to help clients from the pre-revenue stage to upward of $50 million annually to comply with last year’s domestic tax reform legislation.

Spark uses the technology platform KPMG acquired last summer when it purchased a business then known as Bookly, which at the time solely provided cash-basis accounting assistance to small companies.

“Robotic process automation, intelligent automation and other emerging technologies are just beginning to disrupt the accounting and tax services industries,” says Jeffrey C. LeSage, Americas vice chairman of tax at KPMG. “KPMG Spark reflects KPMG’s commitment to bringing innovative solutions to an expanding range of clients so we can help them drive growth, gain efficiencies and create greater value.”

KPMG Spark provides online bookkeeping, tax preparation and related services, supported by staff.

“The KPMG Spark solutions are designed to give business owners the tools they need to gain back the time they are spending on finance management, so they can pursue their passions and grow their businesses,” says Zach Olson, who joined KPMG as a managing director as part of the Bookly acquisition.

KPMG Appoints Independent Director to Serve on Its U.S. Board

Linda L. Addison

Linda L. Addison

New York-based KPMG LLP (FY17 net revenue of $9 billion) announces the appointment of Linda L. Addison as an independent director to its U.S. board of directors. Addison is the second independent director the firm has announced, joining retired Gen. Janet C. Wolfenbarger, who was appointed in October.

“This is an important change to our governance model, and demonstrates our ongoing commitment to quality, innovative thinking and a values-driven culture,” says Lynne Doughtie, KPMG U.S. chairman and CEO. “We are very pleased to welcome Linda to our board, as she brings deep and robust global business experience and expertise to complement our already strong board of directors. In this complex business environment, it is critical for our firm to have the benefit of outside perspectives and diverse viewpoints as we continue to evolve our business to meet the needs of our clients and the capital markets well into the future.”

Addison is the immediate past U.S. MP of Norton Rose Fulbright, one of the world’s largest global law firms. For more than three decades, she has worked with CEOs, corporate boards and corporate executives across multiple industry sectors, both regulated and unregulated, including some of the world’s leading multi-national companies.

KPMG and Google Enter an Alliance to Help Organizations Transform Digital Experiences

New York-based KPMG (FY16 gross revenue of $8.6 billion) announced an alliance with Google to help organizations transform their business and operating models with secure cloud computing, machine learning (ML), enterprise mobility and advanced analytics technologies.

As part of the collaboration, KPMG is creating a portfolio of industry solutions built on Google Cloud Platform (GCP). KPMG member firms around the globe are currently engaging with clients on solutions for financial services, insurance, healthcare, manufacturing, and retail, among other industries. These solutions, including customer service solutions, contract management, cyber security, regulatory compliance and business and process performance, will benefit from GCP’s trusted security, advanced data analytics and ML.

Two KPMG solutions available now are KPMG Intelligent Interactions for creating a differentiated customer experience, and the General Data Protection Regulation (GDPR) Assessment and Compliance solutions for managing customer data and privacy.

“Organizations are seeing advanced technologies and natural language experiences as a key to transforming their businesses,” says Miriam Hernandez-Kakol, KPMG’s Global Leader for Customer & Operations and Executive Sponsor for the Google Alliance. “KPMG is creating data-driven solutions that harness Google Cloud technology, including machine learning, to help our member firm clients advance business strategies and deliver unrivaled digital experiences.”

“Our alliance with KPMG helps customers across industries benefit from the advantages of Google Cloud, including our advanced security, data analytics and machine learning capabilities, to solve real business challenges,” says Tariq Shaukat, President, Partners and Industry Platforms, Google Cloud. “We’re working alongside KPMG to develop new solutions that help enable customers to actively participate in the ideation and creation of their own solutions.”

KPMG Selects 135 Individuals for Master of Accounting with Data and Analytics Program

The 135 participants in a program developed by New York-based KPMG LLP (FY16 gross revenue of $8.6 billion) will receive full tuition funding, an internship on a KPMG audit or tax team, and a full-time position upon graduation with KPMG through an advanced entry program.

“Future business leaders must be able to harness and analyze the data in a company’s tax filings to help increase efficiency, reduce risk and create value across an entire organization,” says Jeffrey LeSage, Americas vice chair of tax. “This program provides them with hands-on experience with D&A and the opportunity to build advanced skills they can bring to our clients.”

KPMG collaborated with the Ohio State University Max M. Fisher College of Business and the Villanova School of Business to launch the program in 2016. A year later, KPMG expanded the program to nine schools, increased the number of scholarships to 135 and added a tax component. KPMG provides each school with access to proprietary KPMG technologies that integrate easily into its academic programs.

“We’re matching new technologies to audit professionals who must be future-ready and know how to use these new tools effectively,” says Frank Casal, KPMG vice chair of audit. “These talented individuals have a thirst for learning and critical thinking skills, exactly the characteristics needed in this environment of tremendous change and disruption and to deliver high quality audits.”

KPMG Bolsters Cyber Capabilities Partnership

New York-based KPMG LLP (FY16 gross revenue of $8.6 billion) has partnered with Okta Inc., a provider of single sign-on capabilities across platforms.

The alliance will allow KPMG cybersecurity services to design, implement, and automate identity and access management processes using Okta’s leading cloud identity platform to help clients manage, control, and secure enterprise and consumer access, while identifying areas for cost savings.

“Our alliance with Okta is accelerating KPMG’s status as a leading cybersecurity firm with the ability to help clients protect information as they pursue new digital interactions and enhanced productivity in the cloud,” says Charlie Jacco, principal of KPMG cybersecurity services. “With Okta, we can deliver fast and reliable IAM solutions to help keep data safe, while enhancing the user experience.”

“In today’s ever-evolving security landscape, organizations must protect data across an increasingly complex breadth of technologies, including cloud applications, mobile devices and legacy solutions. The Okta Identity Cloud – including our identity and security products, as well as our 5,500 pre-built integrations to applications and infrastructure providers – enables organizations to easily and securely adopt the technologies they need to fulfill their missions faster,” says Patrick McCue, senior vice president of worldwide partners, Okta.