KPMG Malta’s revenue for 2010 decreased to €12.42 million, a drop of 1.9 per cent, compared to €12.66 million in 2009, according to the firm’s 2011 Transparency Report.
“Though over the last three years revenue increased by a compound annual growth rate of just over eight per cent, total firm revenue for 2010 decreased by 1.9 per cent from that reported in 2009,” the report says.
In 2008 KPMG’s total firm revenue amounted to €10.63 million, which then increased to €12.66 million in 2090.
In 2010 the firm’s revenue from audit services totalled €5.97 million (48 per cent) while revenue from tax and advisory services amounted to €6.45 million (52 per cent).
Audit billable hours in 2010 represented just under 60 per cent of total billable hours. The greater part of tax and advisory revenue came from services provided to non-audit clients.
“In addition, revenue generated from any one audit client or client group was well within the applicable regulatory independence requirements,” the report states.
“KPMG is committed to doing the right thing in the right way for our people, our clients and other stakeholders including the capital markets we serve. To create this shared sense of identity, we have clearly stated values and a Code of Conduct against which an expected level of behaviour is understood. The Code emphasises that each partner and staff member is personally responsible for demonstrating the legal, professional and ethical standards and behaviours that apply to his role and level of responsibility,” the report states.
“We understand that trustworthiness is a critical characteristic that stakeholders expect and rely upon. It is this commitment that underlies our values-based compliance culture where individuals are encouraged to raise their concerns when they see behaviours or actions that are inconsistent with our values or professional responsibilities. Any concern is considered and constructively reviewed and appropriate action taken.”
The report highlights that according to the firm’s 2010 People Survey 97 per cent of employees confirmed that KPMG’s values are clear and that they fully support them. In the same survey 93 per cent of respondents also said that partners and managers are held accountable for operating in a way that is consistent with KPMG’s values.
To help ensure the firm’s independence, the firm, its partners and management group, and the personnel assigned to each engagement must be free from financial interests in, and prohibited relationships with, the client, its management, its directors, and its significant owners.
“The firm’s ethics and independence partner is also responsible for ensuring that we apply robust and consistent independence policies, procedures and tools,” the report says.