KPMG extends global consulting reach
KPMG has acquired global sourcing and shared services provider EquaTerra to extend its consulting services across Europe, Asia Pacific and the US.
Terms were not disclosed, but the transaction broadens the Big Four firm’s global outsourcing and shared services advisory offerings. KPMG said the deal fits with its growth strategy of “focusing on organic and inorganic opportunities in select high-demand market sectors”.
The international audit firms are not as seamlessly global as they seem and this deal was completed separately by KPMG Holdings (UK), KPMG (US) and KPMG International.
However the growth of KPMG’s consultancy and outsourcing practice increases the risk of potential conflicts of interest between the firm consulting and audit wings.
According to re: The Auditors’ Francine McKenna in a recent blog post,“If the consulting firm was providing services to a KPMG audit client, they will have to stop or convert those services to fall under the ‘audit related’ category which is the latest dodge of Sarbanes-Oxley for risk and controls advisory services.”