(solution) History of KPMG Story KPMG was formed in 1987 with the merger of Peat Marwick International (PMI)…

(solution) History of KPMG Story KPMG was formed in 1987 with the merger of Peat Marwick International (PMI)…

History of KPMG Story KPMG was formed in 1987 with the merger of Peat Marwick International (PMI) and Klynveld Main Goerdeler (KMG) and their individual member firms. Spanning three centuries, the organization’s history can be traced through the names of its principal founding members – whose initials form the name “KPMG.” K stands for Klynveld. Piet Klijnveld founded the accounting firm Klynveld Kraayenhof & Co. in Amsterdam in 1917. P is for Peat. William Barclay Peat founded the accounting firm William Barclay Peat & Co. in London in 1870. M stands for Marwick. James Marwick founded the accounting firm Marwick, Mitchell & Co. with Roger Mitchell in New York City in 1897. G is for Goerdeler. Dr. Reinhardt Goerdeler was for many years chairman of Deutsche Treuhand-Gesellschaft and later chairman of KPMG. He is credited with laying much of the groundwork for the KMG merger. In 1911, William Barclay Peat & Co. and Marwick Mitchell & Co. joined forces to form what would later be known as Peat Marwick International (PMI), a worldwide network of accounting and consulting firms. William Barclay Peat & Co. was founded in 1870 in London, Marwick Mitchell & Co. was founded in 1897 in New York City. Klynveld Kraayenhof & Co. was founded in Amsterdam in 1917. In 1979, Klynveld Kraayenhof & Co. joined forces with Deutsche Treuhand-Gesellschaft and the international professional services firm McLintock Main Lafrentz & Co. to form Klynveld Main Goerdeler (KMG). Goerdeler was Dr. Reinhard Goerdeler, the chairman of Deutsche Treuhand-Gesellschaft. In 1987, PMI and KMG and their member firms joined forces. Today, all member firms throughout the world carry the KPMG name exclusively or include it in their national firm names. Discussion Question ■ What types of problems could result from combining four firms from different nations with different cultures into a working environment?