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Company Brief
Deloitte Touche Tohmatsu

by Karen Spring

Copyright 2019, Faulkner Information Services. All Rights Reserved.

Docid: 00015181

Publication Date: 1904

Report Type: VENDOR

Preview

Deloitte, one of the "Big Four"
accounting and audit companies, is a large organization
comprised of a network of independent firms thats offer auditing, financial
advisory, tax, and consulting services. From humble beginnings in 1845, Deloitte has
grown into a company that provides services through its four main subsidiaries.
This report takes a look at Deloitte’s history, key services, competitors,
and latest news.

Report Contents:

• Fast Facts
• History
• Key Executives
• Major Services
• Major Competitors
• Recent Activity

Fast Facts

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Name: Deloitte Touche Tohmatsu
Headquarters:
30 Rockefeller Plaza, 41st Floor
New York, NY 10112-0015
(212) 492-4000
Fax: (212) 489-1687
Web: https://www2.deloitte.com/
Type of Vendor: "Big Four" Accounting
Founded: 1992
Product/Service Areas: Accounting and Audit Services

History

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Deloitte Touche Tohmatsu Limited (DTTL) is a private UK company that
serves as an administrative umbrella organization for a worldwide network of independent
consulting firms providing auditing, consulting, financial advisory, risk management, and
tax services to selected clients.

In 1845, William Welch Deloitte opened an office in London and four years
later became auditor for the Great Western Railway. In 1895, Charles Waldo
Haskins and Elijah Watt Sells created Haskins and Sells, an accounting firm, in
New York. George A. Touche opened an accounting office in London in 1898 and
established a US-based office, Touche, Niven and Company, two years later. In
the early 1900s, an article attributed to Charles Haskins revealed that
organizations should be independently audited by certified public accountants,
but it wasn’t until the 1929 stock market crash and the Great Depression that
the US government and other entities realized how proper accounting practices
could possibly have prevented some of the bankruptcies. In 1933, Colonel Arthur
Carter, President of the New York State Society of CPAs, testified before the
Senate that independent audits should be mandatory for public companies. That
same year the Securities Act was passed requiring public companies to file
independently certified registration statements and reports. Touche, Niven and
Company merged with accounting firm A.R. Smart, a former Deloitte accountant,
forming Touche, Niven, Bailey, & Smart, changing its name to Touche Ross in
1969. In 1968, Nobuzo Tohmatsu created Tohmatsu Aoki & Company, a Japanese
company that became part of the Touche Ross establishment in 1975. In the 1980s,
the company became known as Deloitte Haskins and Sells. In 1989, Deloitte
Haskins and Sells merged with Touche Ross, becoming Deloitte Touche, later
renamed Deloitte Touche Tohmatsu. 

DTTL does not itself provide services to clients. Instead, DTTL and
each DTTL member firm are separate and distinct legal entities.

Deloitte, as DTTL is normally known within local jurisdictions, is one of
the "Big Four" accounting and audit firms, along with Ernst & Young, KPMG, and
PricewaterhouseCoopers.

Deloitte LLP

In the US, Deloitte LLP is the member firm of
DTTL. Like DTTL, Deloitte LLP does not provide services to clients. Instead, services are primarily provided by the subsidiaries of Deloitte LLP,
including:

• Deloitte & Touche
  LLP
• Deloitte
  Consulting LLP
• Deloitte Financial
  Advisory Services LLP
• Deloitte Tax LLP

Key Executives

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Mike Fucci, Chairman and Chief Executive Officer, Deloitte LLP.

Cathy Engelbert, Chief Executive Officer, Deloitte LLP. 

Punit Rejen, Deloitte Global CEO. 

Major Services

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Deloitte offers services for audit, mergers and acquisitions, risk and
financial advisory, analytics, and tax as well as a large repertoire of
consulting services. The company’s key services
are outlined in Table 1. 

Major Competitors

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Deloitte Touche Tohmatsu faces a wealth of competition from several other
companies in the areas of tax, audit, and consulting.
The most notable competitors in this space are:

• Accenture: https://www.accenture.com/
• Booz Allen Hamilton: https://www.boozallen.com/
• Capgemini: https://www.capgemini.com/
• Ernst & Young: https://www.ey.com/
• KPMG: https://www.kpmg.com/
• PricewaterhouseCoopers: https://www.pwc.com/

Recent Activity

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Joseph Ucuzoglu will take the helm as CEO in June 2019, succeeding Cathy Engelbert.
Janet Foutty will be the new Deloitte chairman. Every four years, Deloitte
completes a leadership succession process.  

Deloitte is consistently ranked as a leader in Gartner’s Magic Quadrant
reports. Most recently, Gartner named Deloitte the leading security consulting
firm. . 

Deloitte, along with the other members of the "Big Four," received
much criticism following the demise of UK facilities management and construction
company Carillion in 2018. In a damning 100-page report produced by two UK
government committees, PwC, EY, KPMG, and Deloitte were referred to as members
of a "cosy club." Deloitte, Carillion’s internal auditor, missed
"terminal failings" in risk management and financial controls or
"too readily ignored them," according to the report. The report said
that Carillion’s directors did not properly represent the financial reality of
the business. The company went into liquidation and its demise had far-reaching
effects on lenders, clients, and its employees.¹ The fallout from
Carillion continues. In 2019, a UK Parliament committee called for
PricewaterhouseCoopers, Ernst & Young, KPMG, and Deloitte to separate their
consulting divisions from their auditing businesses. The Big Four control over
90 percent of UK audits for large companies. The Business, Energy and Industrial
Strategy Committee’s report states, "We are not confident in relying solely
on the integrity of auditors to do the right thing in the face of conflicting
interest. For the big firms, audits seem too often to be the route to milking
the cash cow of consultancy business."²

References

¹ Rob Davies. "’Recklessness, Hubris and Greed’ – Carillion
Slammed by MPs." The Guardian. May 15, 2018. 

² Thomas Beardsworth and Jonathan Browning. "UK Lawmakers
Demand Break Up of Big Four Accounting Companies." Bloomberg. April
1, 2019. 

About the Author

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Karen M. Spring is a staff editor for Faulkner Information
Services, tracking high-tech industries, including network security, ERP, CRM,
network management, Internet security, and software tools. She writes regularly
on high-tech topics for publications in the k-12 and higher education industry.
Previously, Ms. Spring was a marketing specialist for two computer distributors,
working closely with such clients as 3Com, IBM, Okidata, Unisys, and Acer.

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