KPMG Malta's income doubled since 2005

KPMG Malta has doubled its fee income to €10.63 since 2005, according to the firm's transparency report for 2008. This growth came about mainly through an influx of financial services and international business clients.

The EU's Statutory Audit Directive, adopted in 2006, and recently incorporated into Maltese law, obliges firms auditing public interest entities to publish an annual transparency report.

In 2008 the firm's revenue consisted of €4.05 million from audit services (38 per cent) and €6.58 million from tax and advisory services (62 per cent).

Although audit revenue represented less than 40 per cent of the total revenue it nevertheless accounted for over half the firm's total chargeable hours.

The report also points out that the firm's growth in tax and advisory services has been particularly pronounced in the case of non-audit clients - in 2008 the greater part of tax and advisory revenue came from services provided to non-audit clients. Furthermore, revenue generated from any one audit client or client group was in o case in excess of five per cent of the firm's total revenue.

In his foreword, KPMG senior partner and head of audit Joseph Schembri said the firm's report was not limited to the minimum disclosures required by law. He also said that KPMG Malta has grown significantly over the last few years "and we fully expect that we will continue to grow in years to come".

Mr Schembri said that the firm's growth "has been enabled by our commitment to the highest levels of quality and integrity in everything we do. In particular our belief in performing high quality audits is both uncompromising and unwavering."

The report points out that at the end of 2008 the firm consisted of 210 full timers and in addition had enrolled 110 university students in its student recruitment programme. The number of hours that the firm's employees spent in training sessions last year amounted to 34,000. The total cost to the firm, including salary cost, amounted to just over 10 per cent of its aggregate fee income. In 2008, 35 employees worked overseas.

The transparency report also says that prior to the firm accepting or declining an appointment as a service provider an evaluation is conducted and documented on all prospective clients using a process which evaluates the risk of KPMG being associated with the prospective client. Existing clients are re-evaluated every 12 months.

The firm's executive management committee, chaired by the senior partner, is responsible for formulating concrete proposals for the consideration of the partners' meeting on a variety of issues including the firm's vision and strategy, financial management and human resources strategies and policies.

KPMG is a global network of professional firms providing audit, tax and advisory services. The network operates in over 144 countries and has 137,000 people working in member firms around the world.

The independent member firms of the KPMG network, such as KPMG Malta, are affiliated with KPMG International.

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