Yamna PDF

Business Analysis of KPMG Taseer Hadi & Co
Submitted By
Yamna Fakher
L1S10BSAA0005
Session 2010-2014
Bachelors in Applied Accounting
Project Supervisor
Prof. Abubakar Mirza
Faculty of Commerce
University of Central Punjab
1-Khayaban-e-Jinnah Road, Johar Town, Lahore, Pakistan
Business Analysis of KPMG Taseer Hadi & Co
A PROJECT SUBMITTED TO
THE UNIVERSITY OF CENTRAL PUNJAB
IN FULFILLMENT OF THE REQUIREMENT OF THE
DEGREE OF
BS (HONS) APPLIED ACCOUNTING
By
Yamna Fakher
L1S10BSAA0005
Session 2010-2014
SUPERVISED BY
Faculty of Commerce
1-Khayaban-e-Jinnah Road, Johar Town, Lahore, Pakistan
pg. 1
Certificate of Approval
It is certified that the work contained in this thesis titled Business Analysis of KPMG
Taseer Hadi & Co has been carried out and completed by Miss Yamna Fakher, Registration
No L1S10BSAA0005 under my supervision during her last semester of Bs (Hons) Applied
Accounting at University of Central Punjab, Lahore Pakistan.
Date: __________________
___________________
(Supervisor)
______________
Prof. Muhammad Azhar Ikram Ahmad
Dean
Faulty of Commerce
Lahore
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Approved by
_________________
UNDERTAKING
I YAMNA FAKHER Roll No L1S10BSAA0005, STUDENT OF BS (HONS) APPLIED
ACCOUNTING hereby declare that the matter printed in the project titled Business Analysis
of KPMG Taseer Hadi & Co is my own work and has not been printed, published and
submitted as research work in any form, in any university, research institute etc. It has been
properly acknowledged to the original author.
Date: _________________
Signature of Student:
Name of Student:
________________
Yamna Fakher
Registration Number: L1S10BSAA0005
pg. 3
DEDICATION
TO
MY
FAMILY AND FRIENDS
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Certificate of joining
pg. 5
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pg. 7
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Acknowledgement
University internship program is a great opportunity for an individuals selfdevelopment as well as intellectual and professional learning. It is a matter of great honor for
me to have so many remarkable people to lead me through in finalization of my internship
period. Despite all the efforts I have put into this thesis, putting this together would not have
been possible without the help of many individuals.
All my praises are for the Allah Almighty for showering me with His uncountable
blessings throughout my internship program and during the preparation of my thesis.
I would like to express my thanks to Prof. Muhammad Azhar Ikram, Dean Faculty of
Commerce, University of Central Punjab in particular with whose kindheartedness all this
could have been possible.
I would also like to avail this chance to express my profound gratitude and deep regards
to my guides, Prof Abu Bakar Mirza and Prof. Imran Shehzad for their exemplary guidance,
supervisory and constant appreciation throughout the course of the internship program and
thesis. The blessing of their help and guidance from time to time shall carry me a long way in
the journey of my life on which I am about to embark.
I also take this opportunity to express a deep sense of gratitude to my department heads
of KPMG which includes Mr. Nageen (Senior Manager), Ms Nibras Qureshi (Deputy
Manager), Mr. Masab Akbar(Deputy Managers) and Mr. Emad Maqbool (Supervisor) for their
cordial support and guidance which helped me in completing my tasks through various stages.
pg. 9
I will also like to specifically mention the names of the HR Department which includes
Miss Sara Syed, Miss Maisa Khan and Sir Taurab Ali for tolerating me whenever I went to
them for any kind of guidance or for obtaining information for my thesis.
I am obliged to my colleges and my friends at KPMG which include Sadaf Khan (ACCA
Trainee) and Anum Tahir (CA Trainee) for the valuable information which they provided me.
I am grateful for their cooperation during the period of my assignment and for their
friendly behavior and openness which made me feel comfortable in an environment which
was very strange for me. I would also like to thank all the other articled students in my
department at KPMG who have helped me write this thesis based on their various insights.
Especially Nouman, Taimour, Umair, Zain and Salim.
Last but not the least I am grateful for the support and constant motivation of my parents and
my sister, without their help I would not have been able to make this possible.
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Abstract
Traditionally, getting a university degree has always been a cause for celebration and
for most of the students this achievement is a signal of the onset of adulthood and offers the
promise of a career that would start in mere months or weeks. But in today's competitive world,
job market for graduates who leave universities armed only with a degree may not be so
fortunate.
Today most of the employers look for students who have held internships because they
understand the value for doing an internship. Internships does not only helps students identify
their career path but also builds connections with in their field of career. It helps them to
understand the practical ins and outs of the corporate world. It makes them realize the fact that
how difficult it is to earn in a world full of competition.
I being a student of final semester of Bs (Hons) Applied Accounting of University of
Central Punjab is required to do an internship for four months to meet the criteria of my degree
program. So I decided to do internship in KPMGTH, one of the big four international Audit
firms. Being a part of KPMG is a great opportunity provided to me by my university. Its not
just an opportunity but a source of honor to work in an international firm with a great reputation.
I have written this thesis as I am required to write it as a criteria of my degree program
but also to provide people with full information about what actually is KPMG, its workings, its
organizational structure, business analysis of KPMG and the things I learned during my
internship period. I have also provided some recommendations for the firm and a conclusion
that I have derived after doing this research.
pg. 11
I have prepared my thesis by keeping in mind a person who has just heard the name of
KPMG and want to know about it. So this thesis will definitely be a source of knowledge and
information for him/her.
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Table of Contents
1. Vision statement14
2. Mission statement...15
3. Introduction of the firm......16
4. Hierarchy of the Firm.....64
5. Departments of the Firm........66
6. Roles and responsibilities of departmental Heads.73
7. Accounting and Internal control system of the firm..74
8. Human Resource policies of the Firm91
9. Marketing strategies of the Firm99
10. SWOT Analysis.............................101
11. PEST Analysis.......................105
12. Recommendations..110
13. Activities Report....111
14. Bibliography...121
pg. 13
Vision Statement
Be the leaders in the markets we chose to serve. We aim to be number one in reputation and
number one or two in size recognized as leaders in terms of services we provide, the
industries we serve and the countries we cover. This means driving ourselves in the best we
do. (HR Manager, 2014)
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Mission Statement
Our mission is to enhance the KPMG brand across the region by working together to
grow a cohesive business unit for the benefit of all practices and achieving compliance with
international/EMA policies and quality standards in implementing the KPMG Vision. (HR
Manager, 2014)
pg. 15
Introduction of the Firm

KPMG
KPMG is the abbreviation of the names of the founder members of the present
organization. The names are as follows: (Wikipedia, 2014)
K stands for Klynveld
P stands for Peat
M stands for Marwick
G stands for Goerdeler
KPMG Global
It is one of the big four international auditing firms. It is a global network of
professional firms and provides services in Audit, Tax, and Advisory. KPMG operates in 150
countries and have more than 137,000 professionals working in member firms around the
world. In key sectors the member firm clients of KPMG include many of the world's leading
organizations, government institutions, national market leaders and other highly respected
organizations. KPMGs tagline is LEADING THROUGH COMPLEXITY (Global, 2014)
KPMG Pakistan
KPMG in Pakistan is represented by KPMG Taseer Hadi & Co. KPMGTH Pakistan
is a member firm of KPMG International (a Swiss cooperative). It was established in 1969,
and in total it has 29 partners and more than 1100 professional staff. KPMGTH has a wide
range of qualified professionals which include Chartered Accountants, Certified Accountants,
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Certified Internal Auditors, Certified Information Systems Auditors, Masters in Business

Administration, and Cost Management Accountants. (Pakistan, 2014)
As KPMGTH is a partnership firm so it is owned by the local partners. KPMGTH is

formed under partnership Act and is regulated by the bye laws of Institute of Chartered
Accountants of Pakistan. KPMGTH is responsible for its own obligations and liabilities but it
is not responsible for the obligations and liabilities of other member firms. (Pakistan, 2014)
In major areas of its practice which are audit, tax, risk advisory and financial advisory
services, KPMG Taseer Hadi & Co have substantial individual and collective experience of
serving clients. The value proposition of KPMG Internationals global network is embodied in
KPMG Taseer Hadi & Co in providing professional services to organizations in both the public
and private sectors. It relies on KPMG member firms for advice on potential business risks, the
integrity of their audit opinion, the provision of sound and valuable business guidance.
(Pakistan, 2014)
KPMGTH's approach has a fundamental element of being industry focused which has
enabled KPMGTH to develop in-depth knowledge of their clients' businesses. It provides them
with an informed perspective on the issues they have to face and this strategy runs across the
full range of KPMGTH's core services (Pakistan, 2014)
Governance Structure
All the partners of KPMGTH elect the senior partners and the board. The board and
the senior partner is elected for three years. The responsibility of the board is to overall
pg. 17
Management of the partnership including budgets, proposals, annual business plans operating
and financial performance etc. The senior partner elected is also the chairman of the board
and this board meets up on regular basis in a year. (Co, 2014)
Values of KPMG Pakistan

The values of KPMG International are the same for all its member firms. These values
govern KPMG Taseer Hadi & Cos relationships with its teams, clients and communities.
Their values form an underlying principle that (Pakistan, 2014)
How they do business with their clients across the world
And how they establish a unified platform on which their brand is deeply rooted.
KPMG Taseer Hadi & Cos clients recognize their unique identity that emerges from
their commitment to their values. These values are given as follows: (Pakistan, 2014)
a. We lead by example At all levels they act in a way that exemplifies what they
expect of each other and their member firms clients.
b. We work together They bring out the best in each other and create strong and
successful working relationships with each other.
c. We respect the individual They respect people for who they are and for their
knowledge, skills and experience as individuals and team members.
d. We seek the facts and provide insight challenging assumptions, pursuing
facts and strengthening their reputation as trusted and objective business
advisers.
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e. We are open and honest in our communication sharing information, insight

and advice, frequently and constructively and managing tough situations with
courage.
f. We are committed to our communities They act as responsible corporate
citizens and broadening their skills, experience and perspectives through work
in their communities.
g. Above all, we act with integrity They constantly striving to uphold the
highest professional standards, provide sound advice and rigorously maintain
their independence.
Principal business themes

These are as follows:
Work together to develop an increasingly cohesive business unit
Increase the effectiveness of the regions approach to markets.
Enhance profitability
Align with global HR policies and procedures.
Achieve global standards of infrastructure.

(Lahore, 2014)
Pakistan Value Charter
We will work together as a team and pursue agreed strategies leaving aside personal
bias
We will set achievable targets for our people and would accept achievable targets and
deadlines from clients
pg. 19
We will be proactive and innovative with our clients and will respond to their needs
quickly, effectively, objectively and would endeavor to exceed their expectations
We will respect our own and our people's need to balance personal and business lives
We will acknowledge and reward people who make positive contributions
We will keep ourselves up to date on professional and business developments and will
proactively share this knowledge
We will create an environment where cynicism, oppression and rudeness are not
acceptable and will not make judgment on people and issues before ascertaining full
facts
We will recognize that leadership is a privilege and a responsibility and the leader's
success will be measured by the success of those on the team being led. (Lahore, 2014)
Awards of KPMG:
Worlds most attractive employer after google-2012
Human Rights Campaigns Corporate equity Index-2011
Diversity Inc Magazine Top 50 Companies-2011
Fortune 100 Best Companies to work for-2011
Companies that care honor roll-2011
Working mother 100 Best Companies top ten-2010

(Lahore, 2014)
KPMG Taseer Hadi & Co Culture

Culture is a system of shared meaning and beliefs of an organization and how they act.
For KPMG Taseer Hadi & Co, its employees are its asset. KPMG Pakistan takes some
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measures to motivate its employees. Some of the motivational techniques used to encourage
employees both monetary and nonmonetary at KPMG Taseer Hadi & Co are as follows:
Promotions
Good salary
Good environment
Bonuses
Transport facility
Saturdays off.
Job security
Annual dinners
Leave fare assistance
Paid Holidays
Wishes for special days (birthday, marriage)
Special awards for good performers
KPMG Taseer Hadi & Co recognizes a staff members personal behavior and
interaction with others as a vital part of the duties of his /her position. In order to achieve the
desired level of performance and corporate objectives, preservation of professional working
environment is encouraged. (Student, 2014)
KPMGTHs environment is such where all persons are treated equally and with respect.
Rights of People are respected and efforts of staff are encouraged. The achievements of any of
the employee is given due recognition. (Pakistan, 2014)
pg. 21
KPMG Taseer Hadi & Co uses leadership managerial style. For them a Leader is a
person who can influence others and have managerial authority. Leadership style varies from
person to person. Every manger according to his position, authority and his personal
capabilities leads his/her subordinates. But a few dominant styles can also be noted at KPMG
Taseer Hadi & Co that are as follows: (Student, 2014)
Self-confident
Intelligent
Extraverts
KPMG Pakistan also has a Service culture. All employees are committed to the
continued development of the excellent service culture in which they seek consistently to
exceed customers expectations. (Student, 2014)
Work culture of KPMGTH is deep seated in their values. It provides an environment

for easy sharing of ideas and encourages equal opportunity for learning and growth. It extends
beyond the workplace, defining their member firm professionals interaction with their
communities, policy makers, shareholders and above all, their clients. (Student, 2014)
The element that sets apart KPMG Taseer Hadi & Co from other professional service
firms is their open and friendly culture. For KPMG Taseer Hadi & Co open and friendly culture
means open-mindedness in exploring and sharing new ideas, and in understanding that people
develop their careers at their own pace and according to their own priorities. (Pakistan, 2014)
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It's about being open to the world around them. They don't expect their people's daily
lives to start and finish within the four walls of the KPMG Taseer Hadi & Cos office. They
encourage their people to get out and to get involved. They believe that successful careers come
from balancing their peoples work time with active involvement in a range of social and
community activities. It's about open, honest and friendly communication, both with their
colleagues and clients. (Pakistan, 2014)
KPMGs Global Code of Conduct

The purpose of the Global code of conduct is:
Sets out KPMGs commitments
Encourages us to act as role model
Defines how we perform as individual
Promotes ethical behavior
(international, 2014)
KPMGs Network
Their network is the organizational structure which links KPMG Firms around the
world. Their commitments to their networks are to: (international, 2014)
Accept the right clients and only accept engagements that they can perform consistently
with high quality standards.
Work with clients, suppliers and sub-contractors that live up to KPMGs core ethical
standards.
Drive quality by developing and applying appropriate methodologies and procedures.
Address challenging situations in the right way by applying professional ethics and
consulting with experienced people within KPMG to reach the right decision
pg. 23
Strive at all times to protect and enhance KPMGs brand and reputation
Keep assets and resources safe and use them only for appropriate business purposes.
KPMGs member Firms clients

KPMGs member firms clients are the organizations and individuals to whom they or
any other KPMG member firms within their network to provide professional services. Their
commitments to their member firm clients are: (international, 2014)
Delivering high quality services to clients in line with their qualifications, experience,
professional commitments and engagement terms.
Act lawfully, ethically and in public interest.
Maintain independence and objectivity and avoid actual or perceived conflict of

interest.
Protect their clients confidentiality and only use their information for proper business
purposes.
Promote member firms services honestly and compete fairly.
Prohibit bribery and corruption by their people and do not tolerate illegal or unethical
behavior by their clients or suppliers or by public officials.
Being in KPMG, an individual is responsible for the following
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Stay Informed
Stand Firm
Take ownership
Raise Issues
Consult with others
An individuals responsibilities as a leader
Lead by example
Support your team
Develop your team
Uphold exemplary standards
Exercise your judgment
Be accountable
KPMGs People:
Their people are employees, partners, subcontractors, consultants and others with
whom they work in the provision of and support of professional services. (international,
2014)
Their commitments to their people are:
Help their people to be objective, ethical and professional.
Encourage their people to raise ethical and professional issues without fear of
retaliation.
Invest in their peoples professional development so that they can reach their full
potential.
Champion an inclusive and collaborative culture that is free from bullying,

discrimination and harassment where everyone is treated with respect and dignity.
Respect the confidentiality of their peoples personal data.
Provide a safe and healthy work environment.
pg. 25
Maintain a just and fair approach of remuneration.
Dress code
All the staff of KPMGTH are required to be clean and well groomed. Males must
wear formal trousers and shirts with ties. Females must wear appropriate clothing befitting
the professional environment of the firm. Informal attire such as sports shirts and jeans are
not permitted. (Lahore, 2014)
Disciplinary matters
To promote fairness and consistency in the treatment of all staff members, KPMGTH
has a disciplinary procedure designed to ensure that: (Lahore, 2014)
The required standards of conduct are followed properly and these are as follows:
There is a fair method of dealing with any alleged failure in this regard.
Any action of a staff member which is unsatisfactory in that it affects the proper
execution of duties or trust or confidence may be a cause for disciplinary action, for
example:
1.
Poor work performance.
2.
Unauthorized absence from work.
3.
Persistently reporting late for assignments.
4.
Being deliberately uncooperative.
5.
Violation of work place rules.
The approach of KPMGTH is to counsel the staff. If this is not successful, subsequent
steps are taken like a series of warnings and a disciplinary interview with the concerned Partner.
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This may result in a staff member being terminated, registered trainees with ICAP may be
asked to seek alternative firm or their training period may be terminated.
In case of gross misconduct, a staff member may be dismissed without notice by the
Staff Partner if it has been established after investigation and hearing the concerned individual
that an act of gross misconduct has taken place. The acts of gross misconduct include:
Breach of Ethics & independence rules
Breach of clients confidentiality.
Censure/ expulsion by a relevant professional body
Physical violence, disorderly/threatening conduct at work
Dishonesty, theft, or fraud.
Sexual harassment
Being under the influence of alcohol/ illegal drugs at work.
Grievance
The firm has a Grievance Procedure in place to facilitate an early and satisfactory
resolution of any grievance concerning the firm and staff members. In case a staff member has
a grievance regarding his/ her terms and conditions of engagement which can be substantiated,
the issue should be presented personally or in writing to the immediate supervisor. The firm
does not entertain any anonymous communication in these matters. (International, 2014)
If the issue remains unresolved for more than two weeks, the staff member may request
involvement of the manager/concerned partner and finally the staff member is allowed to
submit his grievance on form HRF-003-01 to the Staff Partner. Staff partners decision in
consultation with the Senior Partner will be final. (International, 2014)
pg. 27
Geographic distribution of KPMG Taseer Hadi & Co in Pakistan

These are the places where KPMG have their offices: (Pakistan, 2014)
Lahore(GMT +5)
Islamabad(GMT +5)
Karachi(GMT +5)
Groups and teams in KPMG Pakistan

The different management committees are as follows.
Auditing committee
Head Office Committee
Human Resource Committee

(HR Manager, 2014)
The different specialized businesses are as follows:
Tax
Audit
Financial advisory
ERP
IT Advisory
Support teams are as follows:
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Human resource
Finance
Internal audit
Risk management
Goals and Objectives of KPMG Taseer Hadi & Co
Acting lawfully and ethically, and encouraging this behavior in the Marketplace.
Delivering quality service to clients in line with qualifications.
Professional commitments, and engagement terms.
Maintaining independence and objectivity, and avoiding conflicts of interest or undue

influence.
Preserving client and business confidentiality and privacy.
Promoting member firms services honestly and competing.
KPMG help their clients to grow with confidence.
KPMG create fulfilling career opportunities.
KPMG help to build trust between investors and organizations.
KPMG have an established reputation as outstanding professionals who work together

to deliver value.
KPMGs people live with the goal to attract and keep talented people, develop
relationships with the right clients, and protect and enhance their reputation.
Treating everyone with respect and dignity.
Respecting the privacy of its partners and employees.
Fostering an environment in which partner and employee work/life balance can be

achieved.
Providing a workplace that is free from discrimination, harassment, misuse of

substances (Lahore, 2014)
pg. 29
Services Provided by KPMG Pakistan

KPMG is one of the leading providers of
Audit,
Risk Advisory,
Tax
Financial advisory services in Pakistan.
KPMGTHs services can help individuals and organizations in achieving their

objectives and becoming successful in the new economy by
Measuring the performance of individuals
Managing risks faced by organizations
Leveraging knowledge
(Pakistan, 2014)
Code of Business Ethics:

Understanding of KPMG standards of ethical conduct is very important. For this
reason KPMG has designed the code of business Ethics. They
Introduce resources available to help,
Clarify their standards
Provides practical advice about complying with them.
(International, 2014)
Respect & Dignity

They treat everyone with respect and dignity, valuing individual and cultural
differences and recognizes their rights.
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Privacy
KPMG respects and protects the privacy of personal information of its people.
And access to personal information is limited.
Work Life Balance

KPMG encourages a healthy balance between work and private life. It motivates
partners and employees to work with their performance managers.
Equal Opportunity
KPMG is an equal opportunity employer which is:
committed to ensure that its diverse work place is free from discrimination
Promotes individual based on their performance.
Harassment:
They do not tolerate any form of harassment of its people by anyone, including
partners, employees, client and other third parties
Safe Work environment:

They are committed to provide its people with the safe and secure work
environment and understand that this is fundamental for the firms success. KPMG is
committed to ensuring the health, safety and well-being of its people and visitors
pg. 31
Markets of KPMG Pakistan
Pharmaceuticals
Banking
Information and entertainment
Power
Automotive
Building and Construction
Capital Markets
Chemicals and performance technologies
Diversified Industrials
Energy and Natural Resource
Food, Drinks & Consumer Goods
Infrastructure, Government & Health care
Investment Management
Life Sciences
Media
Private Equity
Real Estate
Retail
Technology
Telecommunication
Transport & Leisure
Insurance
(Pakistan, KPMG Pakistan Portal, 2014)

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Communication within KPMG

Communication within KPMG is done vertically. KPMG maintains a system through
which everyone is connected. However it is horizontal at executive level. And this
communication is in the form of hard core copies of the important documents. (Pakistan,
KPMG Pakistan Portal, 2014)
KPMG recognizes the vast use of technology in business. It also has an intranet. In
todays fast pace hi-tech environment, it is unimaginable to live without information
technology. The availability of the intranet facility in the bank for the employees for internal
communication and coordination, easy access to valuable information and knowledge sharing.
KPMGs intranet facility provides the employees a rapid access to wide range of information.
(Pakistan, KPMG Taseer Hadi & Co, 2014)
Following are some technologies KPMG are using to do its business:
pg. 33
Computers
Intranet
Intercom
Emails
Teleconferencing
ERP
Dynamic Process of Management at KPMG Pakistan

Decision Making:
Strategic decision making is done at the top level but if any problem or a situation arises
where manager has to make quick decision than he /she can make it. But the ultimate signal is
given by top management. (Student, 2014)
Conflicts and their Resolution:

On a regular basis employees can come across different kinds of conflicts. These
conflicts are solved in a way that does not disturbs the normal work environment.
Circumstances like personal interest or that appear to create conflict of interest of the firm or
its customers are to be avoided. (Student, 2014)
Situations may arise where an employee, his/her spouse or family member has a direct
or indirect hold of a business interest which can conflicts with firms interest. In order to assure
that the firm makes arrangements for employees that one should declare in advance such
interest to the management. (Student, 2014)
Employees should not make a contract on behalf of the firm with an organization
in which they have a direct or indirect interest. Employees on the payroll of KPMG must not
undertake any other employment that may be part time, temporary or other, or act as consultant,
director or partner of another organization. (Student, 2014)
If the person feels that a specific situation would create conflict of interest than one
should consult their reporting officers or the concerned manager for seeking help before taking
any action. (Student, 2014)
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Controlling against frauds and illegal actions

Within the boundaries of the firm, staff members should remain alert for any kind of
illegal activity being carried out and any such activity must be reported to the concerned
manager or reporting officer. (International, 2014)
There has been a continuous debate on the need to prevent and detect fraud and
improper behavior. A lot of work has been done on this issue like (International, 2014)
The strengthening of internal controls,
Internal control reporting and
Forensic reviews,
This is in an environment in which expectations appear to be increasing for directors and

auditors to ensure that the systems are in place and processes exist to detect significant fraud,
whether collusive or not.
Better governance
For judgments to be accurate fair and useful the people involved need to make
integrated decisions involving numbers and judgments. Audit committees that are strong and
independent prove to be an effective judge of quality and independence. They are a challenge
to management that give the investors a greater representation inside the companies they own.
(Lahore, 2014)
pg. 35
Methods used for the Performance Measurement by the Managers

3 point rating scale
Exceptional Performance that exceeds
Demonstrates
Strong Performance Standard
Performance that reaches
Needs Improvement Standard
Performance under
9 point rating scale

Its a simple matrix. Its vertical axis represents what you have achieved and horizontal axis
represents how you have achieved it.
360 degree feedback

Dialogue includes 360 feedback. It is a valuable tool for seniors to develop and formulate
their personal plans. Target group in such a feedback are partners and management. This feedback is
administered at least after 3 years. (International, 2014)
Controlling
Basic controlling authorities at KPMG Pakistan:
The basic controlling authority at KPMG is the executive committee which comprises of:
Partner
Group heads
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Group heads are responsible for looking at their respective areas for deviations if any
and also to identify new issues arising. This comprises of internal control authorities. However
there is an external controlling authority which visits from abroad every year. (International,
2014)
Control approaches used by KPMG Pakistan

The control approaches used at KPMG Tasser Hadi & Co are different at different
levels. They are as follows:
Proactive control approaches at executive level
Aggressive- contingency based control approaches at lower level
ICAP is the regulator of all audit firms in Pakistan. KPMG has to comply with certain
instruction given by ICAP from time to time. (Lahore, 2014)
Confidentiality
Confidential information is any information that comes to an individual's attention as a
result of the individual's association with KPMG, unless such information is publicly available.
Clients expect KPMG firms and their personnel to exercise alertness and vigilance and to
follow standards of conduct in order to maintain the confidentiality of such information. To
this end, KPMG has developed methodologies and procedures to prevent any real or perceived
breach of client confidentiality. This heading sets out KPMG's policies on confidentiality, as
well as guidance on client confidentiality agreements and ethical dividers. (international, 2014)
pg. 37
Responsibility
KPMG personnel must exercise due care in determining whether information is
confidential, and is responsible for maintaining confidentiality. (international, 2014)
Disclosure of Confidential Information

Except for consultations with appropriate KPMG persons, external legal counsel, or
those authorized by the client, or where there is a professional or legal duty to disclose,
KPMG personnel do not discuss confidential information with other KPMG personnel or
external contacts. (international, 2014)
Confidentiality Requirements
KPMG personnel, both during their association with the organization and afterward,
do not disclose any KPMG client information except where, after consultation with the RMP
and/or legal counsel, it is determined that:
There is express written authorization from the client
There is a professional duty to disclose the information
Disclosure is required by legal or judicial process
Disclosure is required by the law itself.
Unless prevented or obviated by law, or other sensitivities exist, the authorization,

preferably written, of the client is obtained before any disclosure is made. (international,
2014)
KPMG personnel do not discuss any client's affairs in public places, including
elevators, airplanes and other public transportation, and restaurants, or with members of their
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families unless there are clear business reasons for doing so. If such discussion is required, a
heightened sense of awareness of public access is exercised. (international, 2014)
Except for consultations with other KPMG personnel involved in the engagement,
KPMG personnel do not discuss confidential information with other KPMG personnel. In the
case of consultations on difficult professional issues or potential service opportunities, any
potential sensitivities or conflicts of interest need to be considered. The person being consulted
is informed as to which information is confidential. (international, 2014)
Ethical Dividers
Engagement partners are responsible for deciding whether any additional procedures,
such as establishing ethical dividers, are required where there is a higher degree of concern in
the circumstances of an engagement or for clients (or former clients) that may have a higher
level of concern regarding the confidentiality of their affairs. (international, 2014)
An ethical divider is a series of measures implemented to protect confidential client

information. The objectives of the ethical divider are to:
Restrict the confidential information of a client to the KPMG personnel advising the
client Enable the KPMG firm to demonstrate that reasonable steps were taken in this regard.
If ethical dividers are established, procedures include: (international, 2014)
pg. 39
Separation of client service teams
Prohibition of exchange of client information between members of the teams on all

matters relating to the client engagements
Prohibition of access to working paper files by anyone other than members of the
specific engagement team or for purposes of consultation with other professional
advisers or specialist KPMG personnel.
Client Confidentiality Agreements

A client confidentiality agreement (or nondisclosure agreement) is a signed agreement
between a KPMG firm and a client that sets out the specific terms under which KPMG will
retain the client's confidential information or vice versa. The agreement is usually designed to
impose a higher level of confidentiality than would be required under general law, regulations,
or professional standards. (international, 2014)
Client or third-party proposed confidentiality agreements are to be avoided whenever

possible, as KPMG firms are already bound by professional and KPMG codes of conduct. Only
a partner may execute client confidentiality or nondisclosure agreements. A confidentiality
agreement clearly specifies the engagement to which it relates. (International, 2014)
Prior to executing a confidentiality agreement, care is taken that:
The confidentiality agreement does not restrict KPMG from fulfilling its professional
responsibilities
The information subject to the confidentiality restriction is defined as specifically and

as narrowly as possible
The agreement covers only information obtained by KPMG following the date of its
execution
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Information that has been independently obtained or developed by KPMG without

using the information disclosed under the agreement is excluded from the scope of the
agreement
The confidentiality agreement does not restrict KPMG from performing its normal
review processes, such as second-partner review or an assessment review program
Any confidentiality obligation ceases when the information becomes public knowledge
or when the information has been disclosed to KPMG by a third party without a
restriction on disclosure.
The following clause is recommended for inclusion in any confidentiality agreement
KPMG executes the obligations of confidentiality under this agreement shall not apply
to information that:
Is lawfully in the public domain at the time it is transmitted
Has been independently developed by KPMG without violation of this agreement
Is independently known to KPMG at the time of receipt through no unlawful act of

KPMG
Is disclosed by KPMG with the prior written approval of [the entity]
Becomes known to KPMG from a source other than [the entity], which source is not
subject to any restriction on disclosure is required to be disclosed by law.
pg. 41
The obligations of confidentiality under this agreement shall not be construed as preventing
KPMG from: (International, 2014)
Conducting its engagements for [the entity] in accordance with firm policies and
professional standards
Conducting its normal review and quality assessment process with regard to
engagements for [the entity]
Complying with the requirements of any relevant law or regulation. Examples of

confidentiality agreement are set out in Risk Management Manual.
Statement of Compliance
KPMG personnel will complete, initially upon joining the organization and then
annually thereafter, a statement of compliance to confirm their understanding of and
compliance with the organization's policy on confidential information. It is the responsibility
of the RMP to establish a process for obtaining these statements. (Student, 2014)
Reporting Breaches
If KPMG personnel believe at any time they may have inadvertently breached client
confidentiality, the engagement partner is advised of the potential breach immediately. The
engagement/lead partner will determine, in consultation with the RMP, what steps, if any, are
to be taken. (international, 2014)
Ethics and Independence

KPMG personnel provide to play a major part in building KPMGS reputations and
also in delivering objectives and independent advice/opinions. It is important for the regulatory
42 | P a g e
environment in which many of the KPMG member firms operate and that they behave with
integrity and objectivity in all respective assignments. It is the responsibility of all KPMG
member firms and KPMG personnel to exercise alertness and vigilance in applying KPMG
ethics and independence policies. (international, 2014)
Responsibility
It is the responsibility of KPMG personnel to maintain their integrity and objectivity.
Compliance with Independence Regulations

KPMG personnel make themselves familiar with, and comply with, professional
ethics and independence regulations applicable to the work they perform. This chapter
contains KPMG International's minimum policies. KPMG firms may themselves be subject
to more stringent local regulations, or they may have clients subject to a more stringent
foreign jurisdiction [for example, the requirements of the U.S. Securities and Exchange
Commission (SEC)]. Advice as to the application and interpretation of ethics and
independence rules and regulations of a foreign regime is sought from the relevant KPMG
firm's RMP or other partner, such as the filing reviewer. (international, 2014)
Monitoring Compliance with Ethics and Independence Standards

KPMG firms establishes adequate systems to assist KPMG personnel in applying
applicable ethics and independence standards and to monitor compliance with those standards.
pg. 43
In order to ensure that the Firms policies on independence are understood and adhered
to, the partners, directors and professional staff members shall on joining the Firm and
thereafter annually on 01 July, submit Form 1 to the Risk Manager or his nominee.
The partners, directors and professional staff shall on joining the Firm and thereafter
annually on 01 July, submit Form 2 return of securities ownership to the Risk Manager or his
nominee.
The partners, directors and professional staff shall within 7 days of becoming the
owners of prohibited securities inadvertently or under bequest shall submit Form 3 to the Risk
Manager or his designee. The disposal of such securities shall be notified within 7 days in the
Form 4 to the Risk manager or his nominee. (International, 2014)
annually on 01 July, submit Form 5 return of employment of family members and close
relatives with the Firms clients to the Risk Manager or his nominee.
annually on 01 July, submit Form 6 return of borrowing and leasing facilities to the Risk
Manager or his nominee. The HR department will maintain complete record of the above
returns and ensure completeness. (International, 2014)
The Risk Manager or his nominee may request additional information and documents
with regards to returns filed to ensure their accuracy; such documents may include copy of tax
44 | P a g e
returns, and other filings, etc. The Risk Manager or his nominee may carry out review of the
records of HR department to ensure that these are properly maintained and facilitate assessing
the individuals independence. The Senior Partner and partner and manager in charge of the
engagement shall ensure that client allocations and postings do not violate the Firms
independence.
In case of failure of any partner, director and professional staff member to file the
required returns within the stipulated time frame, disciplinary action may be initiated after
giving due opportunity of being heard. (International, 2014)
Where the independence is not violated, but the default in filing is deemed intentional,
the individual concerned may be reprimanded in first instance and any subsequent violation
may lead to penal action including termination. Where the independence is violated and default
in filing the return is deemed intentional, the individual concerned may be terminated, without
any further notice.
The Risk Manager in consultation with the Senior Partner instead of termination may
penalize the defaulter in any other manner deemed appropriate. (International, 2014)
Integrity and Objectivity

At the outset of any consideration of the question of independence, it cannot be too
strongly emphasized that, while codes or guidelines may be enunciated, by far the most
important standard by which to judge independence is the individual's professional integrity.
pg. 45
Whatever statements are promulgated by KPMG, no KPMG person is to lose sight of his or
her basic responsibility, namely to exercise the highest standard of professional judgment.
Although objectivity is essentially a matter of individual perception, adherence to

certain standards of conduct helps ensure that the objectivity of KPMG will be maintained. The
following is a broad summary of such standards: (international, 2014)
KPMG firms follow KPMG independence policies on all engagements. Any departure
from these standards by a KPMG firm requires the approval of KPMG International's executive
committee.
Each KPMG firm must ensure that it remains objective in rendering any of its services,
particularly when it is seen to be closely identified with particular specialist services or
products.
KPMG firms do not enter into any kind of referral fee or contingent fee relationship
whereby remuneration is not based on the traditional measure of professional services rendered,
except where permitted by applicable laws and customs. Consideration is given to the possible
loss of objectivity arising from conflicts of interest. (international, 2014)
Where a KPMG firm benefits from any commission arrangement in supplying a product
or service to a client, the client is informed of this fact in writing.
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Independence, Confidentiality, and Insider Trading

"Confidentiality", particular care is taken to maintain independence where an individual
finds him- or herself, because of his or her professional relationship with a client, having
knowledge of price sensitive information in relation to the securities of a client or former client
or third party that is not generally available to the public. The possession of this knowledge
calls for the highest level of integrity, particularly in regard to the buying and selling of
securities. Anyone having such knowledge must ensure that his or her actions can at no time
be construed as having been influenced by such knowledge. (international, 2014)
Compliance with KPMG Policies

Prospective partners and staff members are informed of the KPMG firm's policies on
ethics and independence. Upon acceptance of employment, partners and staff are required to
sign a confirmation that they are in compliance at that time. Thereafter, partners, directors and
professional staff members are required to sign an annual confirmation. Such confirmations are
to be obtained by each KPMG firm, which then affirms its independence to KPMG
International's headquarters. (Lahore, 2014)
Compliance-Responsibility for Determining Independence

All KPMG partners and professional staff are responsible for determining their
compliance with the policies in this handbook, as well as any additional policies applicable
internationally. Where work is undertaken in a foreign jurisdiction, the KPMG staff seeks
advice from the local RMP as to whether any additional independence requirements may apply
(e.g., the independence requirements of the U.S. SEC). (international, 2014)
pg. 47
All KPMG personnel ensure that they do not hold securities prohibited. Sources to
verify that an entity is not a KPMG audit client include prospectuses, annual reports, proxy
statements, and the international list of "Publicly Held Audit Clients" (PHAC list) that is
maintained by KPMG International's headquarters and is available on intranet pk.kpmg.org
and K-World.
All KPMG partners and professional staff are required to confirm their independence
annually at beginning of the financial year i.e. 1 July each year. (international, 2014)
Family Members and Close Relatives

The independence of any KPMG member firm, its partners, and professional staff
members will not normally be damaged as a result of the employment of a family member or
close relative in an audit client.
Independence would be considered to be damaged if a family member of one of the

following has a position with the client that has significant influence over the client's operating,
financial, or accounting policies. (international, 2014)
A manager or staff member taking part in the engagement is a partner or director who:
Is located in an office that participates in a significant portion of the engagement
Has the ability to exercise influence over the engagement
Has any involvement with the engagement (for example, consultation on auditing or
accounting issues).
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If a partner's or professional staff member's close relative is employed by a client in a

position of significant influence, the partner or professional staff member shall not participate
in the engagement. In addition, the partner is not located in an office that participates in a
significant portion of the engagement. (International, 2014)
Directorships
Partners, directors and professional staff members are prohibited from accepting
directorship positions in entities except not-for-profit and charitable organizations or those
established for personal family reasons. Appointments made in the normal course of
conducting insolvency and fiduciary services engagements.
Those established for personal family reasons in very rare cases, directorships where
there is a significant KPMG business purpose (In all such cases, the appointment is subject to
the prior approval in writing by the KPMG firm's senior partner and by the chairman of
KPMG). In no case is a directorship held in an audit client, in a publicly held company, or in
any other client for whom independence is required. (International, 2014)
Risks Associated with Serving as Officer or Director

KPMG personnel should be aware that personal risks could accrue when serving as an
officer or director of an organization or entity. KPMG's professional indemnity insurance
program does not provide any liability protection to KPMG partners or personnel when serving
as an officer, director, or similar capacity other than: (International, 2014)
Advice given or services performed as a director and/or officer, or any similar title of a
corporate entity of KPMG
pg. 49
Directorships arising out of the professional business of the Corporate Recovery

practice of KPMG
Directorships arising out of the provision of fiduciary services.
The program also does not provide coverage for partners or employees who participate, in their
own name, in not-for-profit activity where no fee accrues to KPMG.
Some, but not all, KPMG member firms have arranged D&O liability insurance to cover
employees' participation as a director or officer for boards of nonprofit entities. Questions
regarding such coverage should be referred to the firm's national office.
Employment with Clients

Partners, directors and professional staff members may receive offers from clients of
employment in a senior capacity. It is the responsibility of such individuals to notify the firm
if they intend to give serious consideration to accepting such an offer. Similarly, professional
staff members are required to notify the engagement partner of any such offer, which they
intend to give consideration. As soon as such notification is given, the partner, director or
professional staff member ceases to have any involvement in the audit of, or other services for,
that client and the work performed by them till that time shall be reviewed by another partner
or manager respectively to ensure objectivity of the engagement. (Deputy Manager FAS, 2014)
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It sometimes happens that a former employee of a client will join the staff or partnership
of a KPMG firm. Such a former employee generally does not participate in the client's audit
until he or she has been with the KPMG firm for at least two years.
According to code of Corporate Governance, advised by SECP, all listed companies in

Pakistan shall not appoint a person as the CEO, the CFO, an internal auditor or a director who
was a partner or director of the firm or a professional staff of the firm (for professional staff
involved on the audit of that company) at any time during the two years preceding such
appointment. The term partner, director or professional staff includes their close relatives i.e.
spouse, parents, dependents and non-dependent children of such partner, director or
professional employee. (Deputy Manager FAS, 2014)
In terms of the Companies Ordinance, 1984, no director, officer or employee of any

audit client, who has been so associated with the client for preceding three years, shall be
eligible to join the Firm as a partner or director. No employee of an audit client who has been
employed by the Firm be admitted to the partnership or promoted as a director unless a period
of three years has elapsed from the date of joining the Firm. Where such an employee is
admitted as a partner or promoted as a director within less than three years period, the firm
shall immediately tender resignation as auditors of the client. (Deputy Manager FAS, 2014)
Gifts and Hospitality

Substantial gifts to or from clients of KPMG firms are prohibited. Small gifts of a token
nature are, however, acceptable. Discounts are not accepted from a client if they are greater
pg. 51
than those offered to the client's own staff or, in any event, for material amounts. (international,
2014)
Entertainment or involvement with a client or a client's staff on a social or personal

level to an extent that would adversely impact the objectivity or independence of the individual
or the KPMG firm is to be avoided. (international, 2014)
Non-audit Services-General
KPMG firms are aware of the effect on their independence with respect to audit clients
and potential audit clients of performing services other than audit services. According to code
of Corporate Governance, advised by the SECP, the firm shall not render any services to listed
company audit clients other than attestation, certifications, special purpose audits/reviews and
agreed upon procedures as defined in the ISAs. (international, 2014)
Non-audit Services-Bookkeeping
KPMG firms do not become involved in the regular maintenance of accounting records
of a publicly held audit client. Where bookkeeping services are rendered to an audit client,
partners and staff other than those responsible for the audit perform such services.
Particular care is taken so that the client accepts full responsibility for all records
prepared through the bookkeeping services. Similarly services such as designing of accounting
systems or compilation of accounts cannot be provided to listed companies being audited by
the firm. (international, 2014)
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Non-audit Services-Investment Advice

The firm shall not engage in investment advisory services. It is clarified that transaction
services engagement to solicit buyer or identifying prospective joint venture partners shall not
be deemed to be investment advisory services. No partner, director or professional staff
member may give advice regarding investments in audit clients. (international, 2014)
Non-audit services-share registrar services

The share registrar services cannot be provided to listed companies being audited by
the firm after 30 June 2003 (international, 2014)
Non-audit Services-Consultancy and Financial Advice

Partners, directors and professional staff members do not assume management
responsibilities or make management decisions for clients. Where a client relies on a KPMG
firm for advice on aspects of financial statements (e.g., setting up of tax provisions), it is
important to ensure that the client is fully informed of the basis and reasons for the advice
given. The client must accept final responsibility for any decisions and any consequential
entries in the accounting records. (international, 2014)
In the rare cases where a staff member is loaned to assist a client, it is made clear to
the client in writing that the staff member is acting during the period of the loan under the
sole direction and control of the client, who must accept full responsibility. (international,
2014)
pg. 53
Non-audit Services-Check Signing

The practice of signing checks as authorized signatories on behalf of clients is avoided.
Where in rare cases such responsibility is accepted, it shall be with the prior permission of the
Risk Management Partner and steps are taken to ensure that full indemnification is obtained
from the client. (international, 2014)
Non-audit Services-Custody of Client's Moneys

KPMG firms do not normally hold moneys on behalf of clients. If the firm does hold
a client's moneys for some reason, such moneys are kept separate from those of the firm and
not placed in any position of jeopardy. The maximization of interest on the moneys so held is
regarded as of secondary importance to their safekeeping. If moneys held are to be used to
settle fees due to the firm, a bill must be issued and authorized by the client before
transferring the moneys to the firm's account. Where interest is received on a client's moneys,
whether deposited with the firm or with other bodies, the client is informed of this fact in
writing. (international, 2014)
Professional Fees-Referred Work

Where a KPMG firm refers work to another KPMG firm, the receiving firm advises
the referring firm if the receiving firm would derive a substantial proportion of its fee income
from such referral. If the referring KPMG firm receives such advice, it takes appropriate steps
to ensure that an independent approach is taken to the referred work. (International, 2014)
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Professional Conduct
Each KPMG firm has a vital interest in the welfare and reputation of all the other KPMG
firms, individually and collectively. While recognizing that individual KPMG firms must tailor
their practices to the circumstances of their respective territories, it is nevertheless desirable as
general principles that: No KPMG firm deviate from the policies of KPMG, thereby
jeopardizing the professional integrity of the KPMG firm concerned and the image of KPMG
as a whole. Each KPMG firm recognize the need to consider the impact of its activities on the
independence and conflict-of-interest positions of other KPMG firms. (International, 2014)
Reputation
KPMG firms take care in entering into joint professional arrangements to ensure that
they have adequately satisfied themselves as to the professional standing and qualification of
the other party, and take all possible steps to ensure that the terms of reference are such that
the KPMG firm does not accept professional or financial risks beyond the scope of its own
responsibilities and capabilities. While any decisions regarding the acceptability of certain
clients or involvement in joint ventures and cooperative engagements are a matter of business
judgment, consideration is given to the fact that certain assignments could not only be
potentially damaging to KPMG's reputation but also entail an undue risk.
Recognizing the existing cultural and professional climate in the geographic area
involved, KPMG firms do not undertake activities or services or represent clients if such
services would not be considered professionally compatible with public accounting and,
therefore, would reduce the standing of KPMG in the eyes of clients and the general public.
pg. 55
Legal and Ethical

The licensing requirements and the applicable codes of ethics of the accounting and
other professions in various countries must be considered before accepting engagements if such
engagements may impact on, or fall within, jurisdictions outside the KPMG firm's country of
origin. Advice is obtained on the application of codes from the RMP or other appropriate
partner in the jurisdiction where the work is to be performed. (International, 2014)
Visits to Clients of Other KPMG Firms

Where a business visit is being made to the client of another KPMG firm, the nature
and timing of the visit is normally communicated to the KPMG firm as a matter of courtesy,
except in rare instances when the client has a valid reason for expressly requesting otherwise.
(Supervisor FAS, 2014)
Working in the Office of another KPMG Firm

Partners and professional staff members working in the office of another KPMG firm
are subject to the particular rules of that KPMG firm insofar as the clients of that KPMG firm
are concerned and seek the advice of the local RMP on any additional independence
requirements in that jurisdiction. (Supervisor FAS, 2014)
Fiduciary Services
"Fiduciary services" are those services provided by a KPMG firm where the
responsibilities carried out are similar to those of a trustee. The client places confidence in the
56 | P a g e
KPMG firm to act for the client's benefit. Fiduciary services do not include the KPMG firm
acting as a liquidator, receiver, or trustee in bankruptcy, or in a similar position. (international,
2014)
Fiduciary services that may normally be offered by a KPMG firm include some or all
of the following.
Trust business-acting as trustee or trust administrator including:
Administering or managing property or other trust assets
Providing accounting and management services
Providing personal or corporate trustees, executors, or nominees
Company administration business, including providing:
Property or business management or administration
Accounting and management services, or officers, directors, secretaries, nominee

shareholders, or registered or administrative officer;
Check signatories on client accounts either in the name of the firm or in general.
The foregoing definition is applicable to KPMG firms operating in either Anglo-Saxon

Common Law or Roman Civil Law jurisdictions on the basis that independence and ethics
considerations apply equally to both.
Where a KPMG firm acts as a trustee, the relevant trust fund may invest in prohibited
securities only if the trust assets are managed by professional investment managers on a
discretionary basis for the benefit of the trust beneficiaries. Discretionary investment managers
pg. 57
may not invest more than 10 percent of the funds under management in any one prohibited
security, and the trustees take no part in detailed investment decisions but are responsible for
the appointment, dismissal, and general overseeing of the investment advisers.
In the course of providing fiduciary services, partners and professional staff members
may act as directors when the directorship is ancillary and complementary to the other fiduciary
services provided to the client. (international, 2014)
In no case are directorships held by partners and professional staff members in an audit
client, in a publicly held company, or in any other client for whom independence is required.
Where a KPMG firm accepts managerial responsibilities for a fiduciary services client,
KPMG may not act as auditor of that client.
Conflicts of Interest
KPMG personnel conduct themselves with integrity and objectivity and skepticism,
being free of conflicts of interest and bringing to professional relationships an unbiased state
of mind. Achieving this objectivity and skepticism requires alertness and vigilance in the
identification of actual and potential conflicts of interest and the observance of methodologies
and procedures for resolving all conflicts. (International, 2014)
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Responsibility
It is the responsibility of all KPMG firms and personnel to be continually alert to
potential conflicts of interest.
Addressing Potential Conflicts of Interest

Potential conflict-of-interest situations are discussed and resolved with the engagement
partner or the Risk Management Partner, and the discussions and resolutions are documented.
Engagements are declined when a conflict of interest cannot be resolved or managed.
Protecting the Confidential Information of Former Clients

Confidentiality is dealt with more generally in "Confidentiality". Former clients can
present a different challenge that may be similar to a conflict-of-interest situation. In a situation
where the work the KPMG firm is being engaged to undertake is for a current client, but it
relates to a matter that may affect a former client, the engagement partner considers the risk to
the KPMG firm when deciding whether or not to accept such an engagement and the need, if
any, for additional safeguards to protect the confidential information of the former client.
The first consideration is whether the KPMG firm is in possession of confidential

information of the former client that may be relevant to the current client in respect to the matter
at hand. Where this is the case, the engagement partner evaluates, in consultation with the RMP,
the risk to the KPMG firm (both litigation risk and harm to reputation) of the former client
objecting to the KPMG firm providing services to the current client, and, if such a risk exists,
the measures needed to safeguard the confidentiality of the former client. (international, 2014)
pg. 59
Where the current and former client are in a potentially adversarial position, conflict
management measures will include, other than in exceptional cases, the KPMG firm seeking
the consent of the current client to notify the former client of the fact that KPMG is providing
services in the matter and the proposal of the use of an ethical divider as described in section
4.2, "Confidentiality". If this is inappropriate because of the confidentiality of the new
engagement (e.g., the new engagement is a forensic investigation), or if consent of the current
client is not forthcoming, the KPMG firm will accept the engagement only where there are
preexisting dividers in place. The dividers are to enable the KPMG firm to demonstrate that
there is no risk that the confidential information concerning the former client was at any stage
passed to the engagement team for the current client. (international, 2014)
The current client is informed of the additional measures to be taken to protect its own
and the former client's confidentiality when its consent is sought for KPMG to approach the
former client. The current client is also asked to agree not to commence any action or
proceeding against KPMG alleging that KPMG was in a professional conflict of interest by
having provided services to the former client.
Seeking consent to notify the former client will serve to help determine whether the
former client objects to KPMG providing services in this engagement. If so, the current client
will be made aware of the potential problem before significant time and resources are invested
in the engagement. Both the current client and the KPMG firm will then be able to make an
informed decision as to whether to proceed with the engagement.
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The RMP is consulted in all such situations. The RMP decides on whether, and how, to
proceed with the engagement for the existing client, including deciding on whether to obtain
legal advice. (international, 2014)
Use of KPMG Property

The KPMG name and service marks, KPMG premises, KPMG personnel, and other
KPMG assets are used by a KPMG firm or KPMG personnel only for firm business. KPMG
firms and personnel do not permit clients or no clients to use the KPMG name or mailing
address, except where this forms part of an engagement, and then only if proper client and
engagement acceptance procedures are carried out. KPMG personnel do not use the KPMG
name and service marks in the pursuit of personal activities. (International, Internal Control
Mannual, 2014)
Government or Community Service

KPMG personnel are encouraged to be active in responsible public or community
service groups, including participation in local government activities. Such participation is
beneficial to the community as a whole, helps to develop the individual by broadening his or
her knowledge and acquaintances, and enhances the image of both the individual and the
KPMG firm. Also, because of the reputation of KPMG firms and the qualifications of KPMG
personnel, local community and government groups frequently seek them out. However, many
factors affecting the individual, the KPMG firm, and clients of the KPMG firm are to be
considered before such a commitment is made. (international, 2014)
pg. 61
Factors to consider in assessing the risk associated with government or community

service roles include:
Whether, despite every effort to conduct such activities on a personal basis, KPMG
personnel may be viewed as acting on behalf of the firm
The risk of potential conflicts-of-interest and other risks when clients or potential
clients are in disagreement with the political positions advocated
The risk that conflicts of interest and adversarial relationships may exist between
political candidates, the KPMG firm, clients, non clients, etc.
The requirement for a commitment of time that may go beyond an incidental

involvement (An excessive commitment of time to an outside activity can be detrimental to an
individual's professional development and the best interests of the KPMG firm.)
In view of the many factors associated with participation in government or community

service roles, KPMG personnel are requested to receive approval from the RMP, or through a
process approved by the RMP, before accepting any such roles.
It is also recommended that personnel who accept positions as directors on boards of

not-for profit entities determine whether they are adequately covered with director's insurance
by the board. Approval of the RMP is required before using any KPMG firm's premises for
personal or community service purposes. (international, 2014)
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Professional and Personal Activities

KPMG personnel are prohibited from engaging (themselves, their KPMG firm, or other
KPMG personnel) in personal business activities that result in the perception that they are
holding themselves out as a KPMG firm.
KPMG firms and personnel are prohibited from agreeing to the use of KPMG firm
offices as post restante (postal address) facilities for clients or no clients, except in rare cases
where it is part of other KPMG services being provided to the client and engagement
acceptance procedures have been conducted. KPMG personnel are prohibited from providing
professional services to KPMG's clients and no clients for their own account or from otherwise
providing or offering to provide services in competition with any KPMG firm.
KPMG personnel are prohibited from using the KPMG name, services marks, premises,
or other personnel in any personal or commercial activity external to KPMG business.
Use of Firm Name or Service Marks

KPMG personnel are prohibited from using KPMG firm letterhead, facsimile
coversheets, or other correspondence containing the KPMG firm's name or service marks for
personal use. In the case of e-mail and Internet facilities, incidental personal use may be
permitted so long as it does not consume excessive resources, it does not interfere with
individual productivity, and it does not preempt any business activity. Automatic attachments,
such as auto signatures to e-mails that contain the KPMG name or service marks are deleted
from personal e-mail. If there is doubt as to what constitutes personal use of KPMG firm
letterhead or logo, the RMP is consulted. (international, 2014)
pg. 63
Hierarchy of the Firm
KPMG International
(Swiss)
Europe, Middle East and

Asia
America
Asia Pacific
Middle East and South

Asia
KPMG Taseer Hadi & Co
Board: 8 Members
amoungst which 2 are
Senior Partners: Hussain
Bassari and Masood Ali
Naqvi
KPMG Islamabad
Partner: Mian Safiullah
Audit Department
Risk Advisory Services

Partner: Kamran Iqbal
Yousafi and Kamran
Iqbal Butt
64 | P a g e
(Principle Office)
Partner: Farrid Ud Din

Ahmed
Partners: Fareed ud Din,

Bilal Ali and Kamran
Iqbal Yousafi
(Senior Manager FAS, 2014)
KPMG Karachi
KPMG Lahore
Partner: Masoood Ali

Naqvi
Tax
Partner: Zeeshan Ijaz
Financial Advisory
Services
Partner: Azam Sheikh
Hierarchy of Authority
Partner
Director
Senior Manager
Deputy Manager
Assistant Manager
Supervisory Senior
Senior
Semi Senior
Junior
Probation
(Lahore, 2014)
pg. 65
Departments of the Firm

In Pakistan KPMGTH is one of the top most service providers of
Audit
Tax
Advisory services
Audit
The proprietary software tools and knowledge-based applications of the audit
department brings the power of knowledge to an audit of an enterprise. Professionals of
KPMGTH have extensive information on industry trends and the business issues. (Pakistan,
KPMG Pakistan Portal, 2014)
KPMG Taseer Hadi & Cos audit staff is divided into engagement teams with
professionals who possess suitable knowledge, skills, time and experience to perform the
engagement. Quality audit is dependent on the strong understanding of the team of the
accounting policies, internal controls, business processes and financial reporting issues
particular to the industry and the organization. KPMG Taseer Hadi & Cos engagement teams
consists of subject matter professionals and industry experienced professionals who actively
take part in areas that require special knowledge, skills, or tools. (Pakistan, KPMG Pakistan
Portal, 2014)
The first priority of audit department of KPMG is to provide quality audits as mentioned
above for fulfilling this promise, KPMG professionals remain alert during their audit to comply
66 | P a g e
with the changing professional standards and regulations (Pakistan, KPMG Taseer Hadi & Co,
2014)
In Pakistan, KPMGTH has always been an early adopter of most of the rules developed
to restore confidence in financial reporting. KPMGTH uses four-phase KPMG Audit
Methodology (KAM) which is their effective audit methodology. It facilitates and enhances
quality of audit. KPMGTHs goal is to deliver quality, independent, rigorous audits.
KAM guides the professionals of KPMG in delivering rigorous audits of the financial
statements of an organization. The audit methodology is created to meet applicable national
and international standards. It focuses on the (Pakistan, KPMG Pakistan Portal, 2014)
1.
Critical nature of substantive procedures
2.
Effective risk assessment
3.
Control testing activities.
KPMGTH gives opinions according to the national statutory requirements and in

compliance with all relevant national and international regulations.
Tax
Tax is a very important head for companies and an effective tax advice can provide a
competitive advantage. This would result in reduction in the risk of regulatory challenges and
sustainability. KPMG has an international tax network that works with regional and global
teams to give advice efficiently and effectively. (Pakistan, KPMG Pakistan Portal, 2014)
pg. 67
KPMG has a number of tax services which are corporate and individual planning and
compliance, as well as global projects that involve designing and implementing tax strategies.
This helps in producing sustainable long-term tax savings. They also provide advice in areas
like international corporate tax, mergers and acquisitions, transfer pricing, indirect taxes, trade
and customs and international expatriate services. (Pakistan, KPMG Pakistan Portal, 2014)
According to KPMG tax strategies often serve as a change catalyst for a client's
business affecting strategy, structure, people, culture, technology etc. For this purpose
understanding the client's appetite for change and risk is very important in implementing a tax
plan that can help in improving shareholder value. (Pakistan, KPMG Pakistan Portal, 2014)
The International Corporate Tax professionals have a wide experience of working

cross-border with deep knowledge of their home jurisdiction to provide their global clients
with viable tax strategies.
The Global Transfer Pricing practice consists of a team of
Economists
Tax practitioners
Lawyers
Financial analysts operating around the world.
This is a multi-disciplinary approach that is supported locally by KPMGs network of

tax professionals who offer member firm clients effective transfer pricing strategies throughout
the world.
68 | P a g e
KPMGTH has an international network of skilled tax professionals who have a lot of
experience in international corporate restructuring at a large scale. This practice is known as
The Global Mergers & Acquisitions (M&A) tax practice. This approach coordinates advice
on a broad range of deal-related tax issues, from corporate and indirect taxes to shareholder
(Pakistan, KPMG Taseer Hadi & Co, 2014).
This network of professionals can render member firm clients with strategies at national
or global or regional level. This helps in reducing their exposure to a number of indirect taxes,
as well as advising on cost control by using improved administrative efficiency and
compliance. There are many types of businesses that are exposed to indirect taxes, such as sales
tax and excise duty. (Pakistan, KPMG Taseer Hadi & Co, 2014)
The network of Trade and Customs professionals advises clients on possible reductions
of both administrative and tax costs, particularly in relation to the import or export of goods.
The network of International Expatriate Services (IES) professionals gives a broad variety of
compliance, advisory and administrative services to international organizations transferring
their employees between different countries.
Advisory Services
Risk Advisory Services
KPMG Taseer Hadi & Cos has a Risk Advisory Services department that helps clients
to manage their risk so that they can emphasize on their core businesses. The business of the
client is understood in detail and then the risks are identified. This helps the clients to
improve performance and make decisions that makes their business stronger. (Pakistan,
KPMG Taseer Hadi & Co, 2014)
pg. 69
Risk Advisory services consist of services like:
Internal Audit Services
Information Risk Management
Regulatory and compliance services
Program Management & Quality Assurance (PMQA)
Financial Risk Management
Business Performance Services
Financial Advisory Services

Whenever businesses have to do a huge investment in starting a new project or in any other
kind of investment, they always need impartial and independent advice about whether the
investment will be good for the business or not. KPMG has a specific department that is
called as the financial advisory services department in which the above mentioned work is
performed. This advice can extend to turnaround strategies for under performing companies,
support throughout a transaction life cycle and a response to security related matters.
Financial Advisory Services are divided into two further categories: (Pakistan, KPMG Taseer
Hadi & Co, 2014)
1. Corporate Finance (Feasibilities)
(a) Feasibility Study of Industrial gases Project.
(b) Feasibility Study of Paper Board Mills.
(c) Financial Projections for a company operating in health care services.
2. Transaction services (Due Diligence)
(a) Financial due diligence of a company undertaking hydropower projects.
(b) Financial Due Diligence for a merger of two companies.
(c) Cell Assistance to a telecommunication Company.
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Hierarchy of Financial Advisory Department
Partner: Azam
Sheikh
Senior Manager:
Nageen Rehman
Deputy Manager:
Nibras Masoom
pg. 71
Deputy Manager:
Masab Akbar
Supervisor: Emad
Maqbool
Senior Associate:
Faiza Faraz
Yousafi
Roles and responsibilities of Departmental Heads

Partner
Ensures the business thrives and prospers by:
Leading and initiating the development of products and services Taking a strategic
business advisory role
Understanding the forces impacting on the business
Managing these effectively Leading others to maximize their potential
Contributing by Shaping the direction of the firm, business unit or own sector
Building and maintaining healthy relationship with clients without compromising the
ethical codes of the profession. (ACCA), 2014)
Manager
Manages teams and achieves results, both for themselves and through others
Manages complex engagements/ projects
Contributes to the firm by having input to:

(1) The development of others
(2) The development of products and services
(3) The improvement of internal processes/ services
It is the responsibility of the managers to provide training to the trainee staff and assist
them in matters where they require assistance. Moreover building competent
professionals for benefiting their firm and the society as a whole.
They make sure that the deadlines are met.
72 | P a g e
They are responsible for keeping a track of the performance of the trainee staff hence
promoting them to the next level once the performance target for the present level is
achieved. (ACCA), 2014)
pg. 73
Accounting System of KPMG Taseer Hadi & Co

KPMGTH is a partnership private firm so its accounting system is highly confidential
and is not even made available to its employees. After interviewing many people in the firm I
came to know that their financial statements are only available to the partners. Not even the
senior manager of any department has any knowledge about it.
The financial statements are prepared at the end of every year. The accounting system
of KPMGTH Lahore branch is managed by Mr. Shah and Mr. Khurrum. These financial
statements are made on their system which is called as PMX accounting software.
The financial statements are reviewed and kept with the partners and no one is
allowed to see them. All the departments of KPMG TH contribute into generating revenue for
the firm, as per the financial year 2013 the revenue contribution is listed below:
Audit- 51%
Advisory- 28%
Tax- 21%
The profits generated per year are given to the partners as an incentive for their
exceptional performance. (Khurrum, 2014)
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Internal Control System of KPMG Taseer Hadi & Co

Privacy Legislation all over the world
As a global network of member firms, KPMG is affected by the legislation of many
countries around the world. Privacy laws worldwide have been increasing in number and
complexity. In every region that KPMG has presence privacy laws already exist in some
form.
Many Privacy Laws contain strict requirements for proper handling of personal data
and impose penalties for non-compliance. Importantly they may also contain restrictions on
transferring personal data to other countries. (international, 2014)
What is KPMGs Policy on Data Privacy?

KPMGs policy on data privacy was updated so that personal data can be transferred
across borders in compliance with privacy laws restricting transfers of personal data to other
countries. Under this policy all personal data across borders by KPMG firms will be treated
according to a single standard.
The policy is based on eight principles that govern the handling of personal data with
which KPMG Firms come in contact and is the minimum standard by which firms should
handle personal data.
In some instances the privacy laws of a country may have additional requirements. In
such instances one should follow local and national requirements as well as with the
minimum KPMG standard.
pg. 75
KPMGs privacy principles were developed to be consistent with prevailing privacy

laws and practices around the world. These principles are as follows:
1)
Fair Processing
2)
Notice
3)
Accuracy
4)
Security
5)
Access
6)
Onward Transfer
7)
Choice
8)
Enforcement.
KPMGs Privacy data policy defines personal data as any information that relates to
an individual that can be used on its own or in combination with other information to identify
an individual. According to this policy an individual refers to a living individual and not to
companies, other legal entities or deceased persons.
One can think of personal data as any information through which the individual can
be identified For Example:
76 | P a g e
a)
Name
b)
Address
c)
E-Mail
d)
Government Identifier Number
e)
Account Number
f)
Any other Information.
Generally sensitive personal data needs to be handled more carefully and in some
jurisdictions may not be collected and used without the individuals explicit consent.
Sensitive personal data includes:
a)
Racial or ethnic origins
b)
Political opinions
c)
Religious and philosophical beliefs
d)
Criminal Backgrounds
e)
Security measures
f)
Trade union memberships
g)
Health or sex life.
Handling Local Vs Cross border personal Data

The KPMGs policy on data privacy was created so that personal data can be
transferred across borders in compliance with privacy restrictions. This policy and the eight
principles generally apply to personal data that is transferred across national boundaries.
Local personal data is the information collected within the jurisdiction of the local
KPMG Firm and which remains within the country at all times. Local personal data is not
subject to the policy and is handled according to the privacy and laws affecting the relevant
local KPMG member firm,
However it is important to note that the policy applies to all personal data including
local personal data held by KPMG Firms in the EU, the EEA and certain other jurisdictions
with similar privacy restrictions. (International, Internal Control Mannual, 2014)
pg. 77
What is confidential information?

It is any kind of non-public information that comes to ones attention as part of ones
position with KPMG. This not only applies to KPMG knowledge and documentation but also
to information about former and current clients and other third parties as well. Some
examples are as follows:
Financial, Legal and technical matters
Business structure or strategy
Employee Information
Information on business relationships
(International, Internal Control Mannual, 2014)

Telephone calls
On no account are third parties to be given clients telephone numbers. Third parties
calling the Office should be encouraged to leave messages for members of staff not in the
Office. Messages should be passed on promptly, using the firms standard yellow slip or by
telephoning the staff at client.
File notes of important telephone calls and meetings should be prepared (and, if
necessary, reviewed by a partner or manager) and filed in the audit working papers, tax or
general correspondence files, as appropriate. Such notes should state the date of the meeting or
telephone call and the names of the individuals present or participating in the telephone call.
When crucial matters (for example dates) have been agreed verbally with a client or the Tax
Department, our understanding should be confirmed in writing.
78 | P a g e
Staff members should ensure that private telephone calls from the office or clients
premises are kept to a minimum. All outstation telephone calls should be dialed by the operator
who will ensure that all such calls are properly charged.
The Operator / caller will ensure that the details recorded clearly identify the number
dialed, the individual placing the call, the person and location contacted and the purpose of the
call. Personal overseas calls will be charged each month to the originator of the call. Business
overseas calls should clearly identify the client name and charge code. (International, Internal
Control Mannual, 2014)
Security
The Office must not be left unlocked when no one is present. The last person to leave
in the evening is responsible for locking the office, ensuring all windows are closed and
switching off all lights and services other than fax, which should never be disconnected.
To ensure the effective and efficient working of the air conditioning, office windows
should remain closed at all times when the air conditioning is in operation. (International,
Internal Control Mannual, 2014)
Correspondence
All incoming mail except that which is obviously private (for example, hand-written
or marked personal) should be opened by the designated person and presented to designated
partner. All incoming faxes should be sequentially numbered and presented to designated
partner. After these have been marked a copy should be made and filed in a master file.
pg. 79
Mail marked private and confidential and addressed to a partner should be routed
directly to the concerned partner. Mail of a business nature which is marked private and
confidential to anyone other than a partner should still be opened and passed for review by
the designated partner.
As a general rule fax and e-mail messages should be answered within a day and letters
within seven days. If a reply is likely to take longer (for example if information is not readily
available) an acknowledgement should state the reasons(s) for the delay and indicate when the
matter will be dealt with.
It is the responsibility of the authorizing individual to ensure that all outgoing faxes are
clearly marked with the appropriate client or office charge code.
Outgoing e-mail and faxes should be checked carefully, particularly as to:
Mailing address, e-mail and fax numbers
Additions, calculations and cross references; and
Punctuation, spelling and grammar
Ensure that correspondence and envelopes are marked Private and Confidential or
Confidential when appropriate. All letters, e-mail and faxes should bear the originators
reference.
The layout of outgoing letters, faxes, memos and reports is set out in KPMG Image
System Guide and various templates have been developed for use with the word processing
80 | P a g e
software. Staff members should ensure that these are strictly followed. (International, Internal
Control Mannual, 2014)
Signing authority and visiting cards

The stationery of the firm may be used only for correspondence relating to the business
of the Firm. Only a partner may sign the firms name on a letter or other document or authorize
a fax sent in the Firms name. Directors and senior managers, may sign certain letters on firms
stationary and send faxes. However, they should sign them in their name and should indicate
their position with the firm.
A member of the Management Group may sign interoffice memos and interoffice faxes
provided that he does so in his name and indicates his position with the firm. Memos and faxes
sent by managers are not to express a professional opinion or commit the firm financially.
Signing of opinions, whether audit or relating to any particular subject is restricted to

partners only. Visiting or business cards bearing the name of the Firm will be provided only
for use by management grade staff. A partner or the designated manager should approve all
cards, prior to issue. (International, Internal Control Mannual, 2014)
Use of computers
KPMG personnel take steps to protect KPMGs equipment which is in their possession
and control against its damage, theft or misuse. All computers, in particular laptop computers,
are properly secured when left unattended. It is recommended that laptop computers be stored
pg. 81
out of sight in a locked cabinet/drawer when left in the office for extended periods. Laptop
computers are not left unattended in any public place, including client premises, and are
appropriately protected when used away from the office.
Although, continued support from Network Administration is provided, and also
machines are designed and tested to be a durable equipment that functions reliably in normal
work environments, KPMG personnel need to use some common sense in handling them.
Do not give physical punishment by dropping or bumping
No one is allowed to place any heavy objects on the machine
No one is allowed to spill liquid onto the machine
Do not pack your machine in a tightly packed suitcase or bag
Do not disassemble your machine
Do not place your machine near any equipment which generates strong magnetic field
Do not place more than one label on a diskette, as floppy drive can get jammed
The lens on the CD Rom tray is not to be touched. One should hold the CD by its edges.
Remove any media from the CD Rom drive or diskette drive while carrying
In the office, PCs are not left overnight before logging out and switching them off, until
and unless a running overnight process is going on. Even in this case the password protected
screen saver is activated. If the PC is to be left unattended for a brief period, whatever the
location, at a minimum, a password-protected screen saver is used to prevent unauthorized
access during the user's absence. (International, Internal Control Mannual, 2014)
Upon ceasing employment

KPMG personnel return all KPMG and client information and all computer assets,
KPMG proprietary software, and KPMG licensed software in their possession. Computer
82 | P a g e
equipment of any kind held by KPMG personnel remains the property of KPMG and is at all
times, without notice, subject to audit review by KPMG. The user is required to get the
clearance form signed by the custodian of notebooks or else, full and final settlement of dues
shall not be cleared by Accounts Dept. The clearance form shall only be signed by the custodian
when all the equipment and floppies/CD Rom is returned. In case of defect found in any of the
equipment of floppies/CD Rom or any other equipment due to mishandling/misuse, the user
will have to bear the cost on his account. (International, Internal Control Mannual, 2014)
Issue of passwords
Passwords are the principal security mechanism to prevent unauthorized access to
KPMG computer systems and information. Each KPMG person is responsible for protecting
their PC and network passwords. Each KPMG person is responsible for the consequences of
their password or other authentication details becoming known by others. (International,
Internal Control Mannual, 2014)
Physical access to the server is prohibited for the staff, only the Network team is
allowed to use the server. Server is located in the server room and is locked after office hours
with a password. Ventilation should be adequate in the server room. Servers are physically
marked with their respective names eg. MAIL_SERVER_1, MAIL_THK, MAIL THK1 etc. A
detailed and accurate record is maintained in the asset register of these servers. All the network
and operating system floppy and CD Rom should be kept under lock and key.
Use of internet
KPMG personnel only use the Internet in ways that do not compromise the reputation
of KPMG, either in respect of the sites accessed or the information posted.
pg. 83
Inappropriate use of the Internet includes accessing or posting information to:
Gambling, on-line casinos and similar sites;
Sites containing or encouraging illegal activities;
Sites that may damage KPMG's reputation.
Except where access relates directly to a client engagement.
(International, Internal Control Mannual, 2014)
Access to Internet sites by KPMG personnel is recorded and can be

checked.
The system also generates an audit log of all Internet access activities every fortnight.
This highlights all cases of attempted security breaches, attempts at accessing undesirable sites
and any such anomaly. These alerts are informed to the each function head for appropriate
action. In case a specific user is noticed attempting more than two security breaches, he/she
shall be proclaimed a "policy offender" and his/her access password and account shall be
sealed. Such sealed access passwords and accounts shall be reinstated only upon receipt of a
written request from the users Partner in charge.
Where possible, KPMG personnel do not access personal Internet accounts from within
KPMG premises, home, or any other remote sites using KPMG equipment.
If this is
unavoidable, concurrent connections to the LAN and the Internet are prohibited. In addition,
antivirus processes are required to be in place. (International, Internal Control Mannual, 2014)
84 | P a g e
Security at a Client Location

KPMG computers are not connected to client networks without authorization. If
connection to client networks is necessary (for example, for printing purposes), care is taken
to disable the file-sharing function.
All information, whether client or KPMG related, in hard or soft copy, is secured when
left unattended at client premises. Measures such as use of lockdown cables for computer
equipment, securing of hardcopy documents and files in locked cabinets, and appropriately
locking unattended rooms where such documents are contained are used to protect confidential
information. (International, Internal Control Mannual, 2014)
Backup of Data
KPMG personnel are responsible for ensuring the backup of client and KPMG firm
data held on their PC or laptop hard drive. Backups are made on a weekly basis on to client
directory on the data server. (International, Internal Control Mannual, 2014)
Antivirus Security
KPMG systems and data are under threat from viruses and similar malicious software
that can enter and infect systems and data through networks or by being carried by disk. While
KPMG deploys a comprehensive range of countermeasures in its network servers and in
individual PCs, good practice from users is also important.
Any actual or suspected virus related problem is reported immediately to the National
Anti-Virus Specialist. Users do not attempt to correct a problem as this could further complicate
pg. 85
the situation. Users receive antivirus software updates automatically on logging into the KPMG
network. However, it is the responsibility of remote users to connect to KPMG network at
least every fortnight so that virus definitions are updated.
Software or data that is received from external or internal sources on disks or via the
Internet should be treated as suspect. Software is not installed, executed, or used in any fashion
until scanned for viruses using KPMG's standard virus detection software. The standard virus
detection software at present is Norton Antivirus. (International, Internal Control Mannual,
2014)
Use of e-Mail
E-Mail is increasingly being used as a primary communication tool. As a trusted
professional services organization, KPMG has a public image to protect, and measures need to
be taken to safegaurd the integrity, confidentiality, privacy, and availability of information
transmitted by e-mail.
E-Mail is often viewed and treated as informal, short-lived, and private. In reality, it is
a permanent, business communication medium that is subject to the same policies as any other
written business communication medium. The content of e-mail is as binding as the content of
any other form of business communication medium.
KPMG personnel use the same care and professional judgment in drafting e-mail and
subject e-mail to the same quality review processes as they would with respect to written
86 | P a g e
communication. KPMG personnel obtain the same approval for a client communication in the
form of an e- mail that they would for a hard-copy communication with the same content.
E-Mail that contains any kinds of threats, defamatory material, viruses, or unsolicited
commercial or political messages should not to be sent, downloaded, displayed, printed, or
otherwise disseminated. E-Mail that constitutes racial or sexual harassment, circulates chain
letters, or promotes activities that are otherwise unlawful or improper is also not to be sent or
downloaded or otherwise disseminated. No user of KPMG's e-mail systems is to represent
themselves as someone else in their e- mail.
A disclaimer and confidentiality notice (or "footer") is required in all business-related

e- mails and is not to be deleted. Example wording for such a disclaimer are: The information
in this email is confidential and may be legally privileged. It is intended solely for the
addressee. Access to this email by anyone else is unauthorized.
E-Mails sent to internal or external counsel that contain sensitive information are
labeled: "Attorney-Client Communication/Privileged and Confidential/Do Not Forward."
KPMG personnel avoid violating copyright when attaching non-KPMG documents to e- mails.
Instead, the e-mail contains reference to where the item referred to can be found (for example,
a url for a Web site).
When e-mails are forwarded or re-sent, generally their content is not changed. If there
is a need to change content in forwarded or re-sent e-mail, changes are clearly marked as such.
pg. 87
KPMG personnel are not, whether implicitly or explicitly, to provide opinions or conclusions
that criticize or express doubt about the quality of work performed during an engagement, in
e-mail communications.
For e-mail communications containing the opinions, conclusions, recommendation, or

advice of a KPMG firm, KPMG personnel consider obtaining a signed hard copy or facsimile
of that document from the client. This signed copy is retained on file to avoid any dispute as to
what has been communicated. To avoid the KPMG service mark being misused by third parties,
the KPMG logo and font are not used in e-mail signatures.
KPMG personnel are to be aware that client or Internet service provider e-mail systems
used from remote locations that may create records of the e-mail activities that are not stored
on equipment owned by KPMG. Sending sensitive or confidential e-mails over such systems
must be avoided.
KPMG provides Internet and e-mail facilities to be used for legitimate business
activities. Incidental personal use is not prohibited by KPMG so long as it complies with the
applicable KPMG firm's policies and does not:
88 | P a g e
consume excessive resources;
interfere with individual productivity;
Pre-empt any business activity.
The firm cannot guarantee that the e-mail will be private. KPMG personnel must be
aware of the fact that the e-mail could be printed, forwarded and stored by others. The E-mail
system of KPMG by default are not encrypted. If confidential information is to be sent via an
encryption, electronic communication system or similar technologies to protect the data are
employed. In any event the consent of the client to the use of e-mail for sending confidential
information is obtained (such consent could, for example, be gained by including a term
confirming the client's consent in the engagement letter). Guidance on the use of encryption
solutions is sought from the firm's information security department.
The firm, in connection with its information security responsibilities, has the right to
access any KPMG computer system, computer file, or computer network at any time, for any
reason. All E-mails or messages are handled by the E-mail system of KPMG and they are a
property of KPMG and are not the property of users of the e-mail services. Except as otherwise
specifically approved by the firm or KPMG International, KPMG personnel should not disclose
an e-mail.
If a KPMG personnel recognizes that some information is intended for particular

individual and may not be suitable for general distribution than he/she should be careful when
forwarding e- mail. KPMG sensitive or client sensitive information is not forwarded by e-mail
to any party outside KPMG without having gone through a KPMG approval process and, where
necessary, a client consent to e-mail communication of confidential information having been
received. Automatic or blanket forwarding of messages to outside addressees (e.g., to e-mail
accounts or pagers) is restricted unless the previous written permission of the KPMG firm's
RMP has been obtained.
pg. 89
Addressees' names and addresses are carefully verified to avoid the mis-addressing of
e- mails. KPMG personnel are responsible for taking all reasonable steps to prevent
unauthorized use of their e-mail account. If their PC or other device containing e-mail facilities
is to be left unattended, at a minimum, a password protected screensaver is utilized to prevent
unauthorized access during the user's absence wherever the location.
Individuals who are not employees of KPMG are restricted from using KPMG's e-mail
system. No visitor, family member, or client is permitted to use KPMG's e-mail system to send
or receive messages. Due to the risk of interception in transit, and that messages may reside on
public mail servers for an indefinite period, KPMG personnel do not send firm or client
information to their personal e-mail accounts (for example, Hotmail) for access using their
personal equipment.
Messages no longer needed for business purposes are deleted promptly and on a regular
basis by users from their personal electronic message storage areas, or discarded if printed out.
E-Mails in any form are only retained if required by KPMG's document retention policy. For
example, if an e-mail is sent/ received to or from a client, as with any other correspondence,
the e-mail would be retained only if it supports the advice, opinions, recommendations, or
conclusions of KPMG.
Portable equipment such as laptop computers are audited more frequently. All KPMG
personnel are required to bring the equipment to office, on demand by Network team for
verification. (International, Internal Control Mannual, 2014)
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Human Resource Policies of the firm

KPMG Taseer Hadi & Co has a separate Human Resource department. But the Policies
and procedures of this department and private and confidential. These cannot be made available
to general public not even to the employees of KPMG Taseer Hadi & Co. I could only observe
things or interview the HR people to gather data which can come under this head. My
observations are as follows: (Assisstent Manager, 2014)
Recruitment
Recruitment or staffing is the process by which an organization/firm ensures that it has
the right number of employees that have suitable skills for the jobs at right time that would
help the company/firm to achieve the organization s objective. For this KPMG advertises any
kind of job openings in the newspapers or websites. Tests are conducted of individuals to check
that whether they have the knowledge of the work or not. After passing the tests the selected
candidates appear in interviews. (Assisstent Manager, 2014)
Selection
KPMG conducts a total of three or two Interviews depending on the situation and the
job position. If the candidate clears the test but does not appear confident in the 1st interview
than he/ she is given a chance in the second interview. The third interview is conducted the the
partner who gives the decision for the final selection. Joining letter is sent to the selected
candidate and it mentions the date for joining the work. (Assisstent Manager, 2014)
pg. 91
Training and development

This is a significant function of HR department. Training is basically arranged to
provide the staff with the appropriate and updated skills and knowledge for the current job.
KPMG provides its employees with such opportunities to: (Assisstent Manager, 2014)
Learn for their present job
To improve performance.
Development
It refers to learning that goes ahead todays job. KPMG is Keen to develop employees
not only for present but future as well. (Assisstent Manager, 2014)
Orientation
KPMG conducts orientation for its new employees. This helps them to understand their
work easily. Orientation includes programs that are of one hour and can extend to 1 week. This
orientation is given by HR manager (Sara Syed). During orientation new employees are
introduced to their Co-workers, to their work, are told about their culture and most importantly
how to handle clients. (Assisstent Manager, 2014)
Remuneration
Stipend is paid to Trainee Students in accordance with the guidelines issued by ICAP
and firms own guidelines. The amount is remitted to the Bank on the fifth working day of the
month. Trainee Students are guided by the Accounts Department for opening their account in
the designated Bank. (Assisstent Manager, 2014)
92 | P a g e
Overtime
Administrative employees who are generally required to work after standard office
hours are allowed a fixed monthly overtime allowance, as approved by the Staff Partner.
Whenever, Administrative Staff are required to work on holidays or after 10 p.m., they are
allowed additional allowance, as approved by the Staff Partner. The amount of overtime is
fixed based on the estimated overtime hours and average salary for the grade. The
administrative staffs who are generally not required to work late hours may not be paid any
additional allowance. (Assisstent Manager, 2014)
Salary revisions
Salary revisions are considered in July every year taking into account individual
performance and rate of inflation during the previous year. All salary revisions must be
approved by the Senior Partner before notification to concerned staff member.
Bonus
Bonus is based on merit. The partners determine the amount of any bonus that is to be
paid to such employees who merit such payments. The bonus payments are generally to
administrative employees. (Assisstent Manager, 2014)
Promotion
Promotion cases are reviewed annually by the partners/concerned supervisors and
approved promotions are generally announced in July. For trainee students promotions may be
considered on a semi-annual basis. (Assisstent Manager, 2014)
Gratuity
pg. 93
Employees are given gratuity at the end of a minimum period of one years service from
the date of confirmation as follows:
Up to 30 June 1981, equivalent to one gross salary for each completed year of service.
Subsequently on the basis of basic salary on the date of leaving the firm multiplied by
the period worked from 1 July 1981 up to the date of leaving, equivalent to one basic
salary for each year of service
The period of less than a year for computation of gratuity will be computed as follows:
Period Entitlement
For period less than three months
Nil
For period over three but less than nine months
50 percent
For period over nine months
Full
Leaves
All leaves are granted on submission of the prescribed Leave Application Form
available with Administration Staff. (Assisstent Manager, 2014)
Trainee Students
The paid leave entitlement of Trainee Students registered with ICAP (inclusive of all
kinds of leave) is a maximum of 180 days during the four year training period if they have
started their training period prior to 30 June 1998 and 150 days if they have commenced their
training after 30 June 1998. Examination leave is generally, granted on following basis:
94 | P a g e
Full part First attempt 5 to 7 weeks
Full part Second attempt 3 to 4 weeks
Referral 1 to 2 weeks
The leave entitlement for ACCA students is generally 4 weeks for first attempt of
each stage and 3 weeks for 2nd attempt and two week for referrals and subsequent attempts.
The examination leave application should be submitted at least three weeks before the
commencement of leave. The leave entitlement may be varied due to client commitment and
all approved leaves are subject to clearance by engagement manager.
The leave application for any purpose, other than examination, should be approved by
manager responsible for planning and staff partner at least two weeks in advance.
The staff should inform the operator and engagement manager in case of sickness
immediately and should submit leave application on the day of joining. All sick leave in excess
of three days should be supported by Medical practitioner certificate.
If the total leave availed by a student registered with ICAP during the training period is
in excess of his leave entitlement and in case of any unauthorized absence, the training period
will be extended by that number of days. Any unauthorized absences will be deducted from
examination leave.
All students registered with ICAP planning to take any other examination should seek
prior approval from their principal in writing. It is generally the policy of the firm not to grant
any leave, other than examination days. (Assisstent Manager, 2014)
pg. 95
Annual leave
All permanent employees are entitled to four weeks (20 working days plus eight
weekend holidays) paid annual leave.
Leave year of the firm is from 1 July to 30 June. If service of a permanent employee is
less than a year on the last day of the leave year, earned leave will be calculated on pro-rata
basis. In case of leave availed on a day before weekend / public holiday and a day following
weekend/public holiday, the weekend/public holidays will be counted against leave
entitlement.
Encashment of annual leave is not allowed. However, an employee may be allowed to

accumulate leave up to six weeks after obtaining specific approval of the Staff Partner. The
leave should preferably be taken for a period not exceeding three weeks at a time. The balance
of annual leave remaining unutilized will not be considered towards notice period at the time
of employees resignation.
Staff members should plan their leaves in advance taking into account the timing of
significant engagements and obtain agreement of the designated manager / partner.
Before going on annual leave, every staff member should prepare a status report for
each engagement for which he is responsible, which should include significant matters that are
expected to arise during his absence. Engagement managers / partners are required to ensure
that such status reports have been submitted and discussed with the staff member before
proceeding on leave. (Assisstent Manager, 2014)
96 | P a g e
Casual / sick leave

The casual / sick leave is restricted to twelve working days per annum. Casual leave
cannot be availed for more than three consecutive days at a time. A Doctors certificate is
required for sick leaves that exceed two consecutive working days. The relevant manager /
partner should be informed as soon as possible during working hours on the first day of absence
due to sickness. On returning to office, a leave application should be submitted. Excess sick
leave can be adjusted against annual leave balance on approval from the Staff Partner.
(Assisstent Manager, 2014)
Marriage leave
An employee is allowed three days leave on account of own marriage, only once during
tenure of service with the firm.
Paternity leave
A male staff member is allowed two days leave on the birth of a child twice during
tenure of service with the firm.
Bereavement leave
In the event of bereavement in the immediate household of an employee, three
consecutive days leave is allowed.
Maternity leave
A female staff member is allowed, on the production of a certificate from a qualified
doctor, unpaid leave before and after childbirth for a period not exceeding a total of six weeks.
pg. 97
Medical facility
All permanent employees are entitled to the firms Hospitalization Insurance Scheme.
Certain specified administrative employees are entitled to reimbursement of medical expenses
and hospitalization facility as separately notified, from time to time, by the Partners.
Car facility
Chartered Accountants from Assistant Manager to Senior Manager and other
employees may be provided car facility or an allowance in lieu thereof. The details about the
scheme are provided to relevant staff qualifying for the scheme by the staff partner.
The facility is limited to persons who have a long term career with the firm based on
their performance and a commitment to stay with the firm. Those who provide commitment of
any sort and do not fulfill such commitment would be required to make up for the loss suffered
by the firm due to non-fulfillment of such commitment at the discretion of partners. Adjustment
for such amount will be made from the final settlement. The allowance paid in lieu of car will
not be considered as part of salary for purposes of gratuity calculations.
The cost of comprehensive insurance cover is paid by the firm. In addition a conveyance
allowance is paid to staff towards normal fuel and all other maintenance costs. The conveyance
allowance is fixed for individual grades. All staff are expected to carry out all routine
maintenance required while the car is in their possession. (Assisstent Manager, 2014)
98 | P a g e
Marketing of a Firm
Every Chartered Accountant in Pakistan who is practicing shall be deemed to be guilty of
professional misconduct, if he/she:
Advertises his professional attainments or services, or uses any designation or
expression other than chartered accountant on professional documents. Visiting cards,
letter head or sign boards, unless it be a degree of a University established by law in
Pakistan or recognized by the Federal Government or the Council. (Accountant, 2014)
As from the above it can clearly be seen that a chartered accountant firms are not
allowed to do Marketing. KPMG Taseer Hadi & Co expands its clientage through responding
to tenders in the newspapers.
Advertising, Publicity, and Other Published Materials Care is exercised to ensure that
any public statements made are not inconsistent with the published positions and policies of
KPMG.
Where published material incorporating another KPMG firm's name is expected to be

circulated outside its country of origin, the KPMG firm initiating the publication consults that
other KPMG firm in the country or countries in which the published material is expected to be
circulated to ensure that it does not violate the code of ethics. When a KPMG firm translates
any published materials into a foreign language, the translation is checked for accuracy and
pg. 99
general content by the KPMG firm in the foreign country concerned. (International, Staff Hand
Book, 2014)
The firm may participate in such activities as are permitted by the Institute of Chartered
Accountants of Pakistan. However, in any of the publications the firm cannot make exaggerated
claims of the services they are able to offer, the qualifications they possess or experience they
have gained. The names of the partners and office addresses may be published but the
experience of individual partners should not be published. The firm may develop a web page
provided the contents that comply with code of ethics. The firm may also use its name in
advertisements for recruitment for clients and the firm.
Reports Used by Clients in Advertising KPMG firms may occasionally be requested to

report on figures used by clients in advertising. There is often difficulty in controlling the use
of such reports that may be published in the media. Therefore, care is taken over the use of the
KPMG firm's name in these contexts. Where clients make such use of reports, and this is not
precluded by the local code of ethics, control is the responsibility of the KPMG firm issuing
the report. (International, Staff Hand Book, 2014)
100 | P a g e
SWOT Analysis
This is an analysis that is used for structured planning. It evaluates strengths,
weaknesses, opportunities and threats of a business. (Wikipedia, 2014)
Strengths
These are the characteristics of a business which allows them to operate more
efficiently and effectively than the competitors. The following are the strengths of KPMGTH:
1) It is among the big four auditing firms

2) Highly Qualified Staff: KPMGTH has a large number of qualified professionals which
includes
pg. 101
Chartered Accountants
Certified Accountants
Certified Internal Auditors
Certified Information Systems Auditors
Masters in Business Administration
Cost Management Accountants etc
3) Exposure to all industries: KPMGTH has to provide services to all industries so they
get to know the insights of all types of industries.
4) Extensive geographic reach
5) Publishes many international analytical publications.
6) Regular provision of Professional Development trainings to its staff. These trainings
are conducted for the continuous development of the staff and the trainees.
7) People working in KPMGTH can move from one member firm to another. The duration
for this can be three months to two years. Sometimes the move may become permanent.
This brings new perspectives and skills to another member firm and its clients. This is
known as Secondment.
8) KPMGTH was recognized as a second best employer around the world.
9) KPMG Taseer Hadi & Co has a big clientage all around Pakistan
10) Specialized and customized tools of KPMGTH enables its employees to work more
efficiently and effectively.
11) KPMGTH has memberships of many research houses Like EIU, Factavia etc. This
enables KPMGTH to search on any kind of data easily.
12) KPMTH has a wide service line. (students, 2014)
Weaknesses
These are the areas of the firm/company that need improvement or that are lacking in
something. The following are few of the weaknesses that I have identified of KPMGTH:
1) KPMG Lahore office is small in size and does not provides its employees some of the
basic requirements like there is no place specifically dedicated where females can offer
their prayers.
102 | P a g e
2) According to the rules laid by ICAP, KPMG Tasser Hadi & Co cannot give
advertisements in print media. Television is recognized as the strongest Medias of all
and KPMGTH has never flashed even a single advertisement on TV.
3) Strict bureaucratic style of management is making the organization less productive and
less adaptive. Bureaucratic style does not let employees participate in decision making.
4) KPMG Taseer Hadi & Co offices are only located in three cities of Pakistan.
5) High employees turnover.
6) Small Number of ERP Professionals.
7) Lack of Resources. Increasing the spending on resources may spur demand for services.
(students, 2014)
Opportunities
These are the opportunities for the business that can act as a competitive advantage
for the company or firm in the future. Following are few of the opportunities that I have
identified for KPMGTH according to my research.
1) One of the biggest opportunity for KPMGTH can be to benefit from the growth
prospects in emerging markets.

2) Demand in accounting and auditing services can increase if KPMGTH goes for early
adoption in IFRS than usual.
3) As this is the period of Nawaz Shariefs government so businesses usually flourish
during his regime. As more businesses will expand KPMTH will have more and more
opportunities to have more clients.
4) They can try to adopt new technologies that other big four accounting firms are not
using.
pg. 103
5) KPMGTH should open more offices in Pakistan to enable them to increase their
clientage. (students, 2014)
Threats
These are factors that are mostly external but can be internal that can adversely affect
the business. Some of the threats KPMGTH has or can face are as follows:
1) ERP Services are not much developed so there is a threat of losing clientage.
2) Data is not managed properly which may result in confidential data being lost. This
may result in a very serious legal action.
3) KPMG is an international name and has a reputation which enables KPMG to have a
huge clientage. If any of KPMGs member firm is sued for any reason and this news is
spread than KPMGs reputation will have a threat and may be this may lead KPMGTH
to lose their clientage.
4) Change in accounting policies by ICAP can act as a threat for KPMGTH.
5) The most precious asset of KPMGTH is its qualified staff. But KPMGTHs pay masters
are not as good as of other member firms. This may result in high turnover of staff.
6) KPMGTH is soon going to start E-Audits. Hacking is a big threat to E-Audits which
may result in the exploitation of data that is hacked. (students, 2014)
104 | P a g e
PEST Analysis
PEST Analysis is an analysis in which the macro-environment in which a company or
a firm operates is scanned. PEST stands for as follows: (Wikipedia, 2014)
Political Factors
This analysis includes legal and governmental regulations issues. It defines both
informal and formal rules in which a company/ firm operates. Examples are as follows:
pg. 105
Political stability
Environmental regulations
Trade Restrictions and tariffs
Tax policy
Employment Laws
As the political situation of Pakistan is not stable many factors can impact KPMGTH
in a way that the government may implement new audit and tax laws which may restrict the
business of KPMGTH or reduce clientage.
The situation of terrorism and crime in Pakistan because of political instability has
led ICAP to establish the rule for not allowing any C.A firms to do advertisement of their
services. This is the reason that KPMGTH has not ever flashed a single advertisement on
television which is believed to be the strongest Medias of all. This has resulted in less
awareness about the services that KPMGTH provides. Common man who is not involved
directly in the field of accountancy has no idea of what KPMGTH is. This unawareness because
of this regulation by ICAP has led to a clientage which is less in number than it would have
been if print Medias were allowed.
Economic Factors
Cost of capital and the purchasing power of potential customers is affected by the
economic factors. The following are its examples:
Economic Growth
Inflation rates
Exchange rates
Interest rates.
The present government headed by Mian Nawaz Sharif who belongs to a business
oriented family and always encourages to promote business activity in Pakistan. The
government creates such an environment for businesses that they flourish and prosper. Such
supportive attitudes of the government always increases the economic activities in the country
106 | P a g e
and favors international investments. Therefore the service oriented firms like KPMGTH
having an international repute always are on the beneficial edge during these periods
The development projects being carried out by the government like establishing
power plants, the infrastructure of metro trains, buses and new roads all adds up the
facilitation to business activities. This is a big opportunity for KPMGTH to grab the business
monitoring and financial analysis of all such projects.
Social Factors
These are the cultural and demographic aspects of the external macro environment.
The size of the potential markets and the needs of the customers are affected by social
factors. Examples are as follows:
Emphasis on safety
Age distribution
Population growth rate
Health consciousness
Career attitudes
KPMGTH is among the BIG Four international auditing firms working in Pakistan
and enjoys a very good repute amongst the business circles. Their generated data and analysis
report carries high weightage and people give it the due value of money they spend. On the
other hand KPMGTH has to provide and maintain the quality of services for which they are
known for. The activities in which KPMGTH is involved are highly sensitive for the people
concerning the information they generate. Any misleading information may affect KPMGs
pg. 107
reputation and may result in the impairment if their brand name. One unsatisfactory client may
influence many other clients in this way their competitors would be on the beneficial side.
KPMGTH has lesser number of services than its competitors. Like Fergusons deals in
the consultation in implementation of ERP whereas KPMGTH does not. They should all range
of services which may be required by different types of organizations and even educate the
organizations for the new international developments which would help the organizations in
achieving their objectives
Technological Factors
These factors are the technological aspects like:
R&D activity
Automation
Technology incentives
Rate of technological change.
As we are all well aware of the fact that technology holds a great importance in todays
world. Technology has many advantages like it improves communication, makes the work
more efficient, reduces the chances of human error etc. KPMGTH is entering soon in E-Audits.
This will enable audits to be more efficient and human error free. E- Audits will also bring
more clients to KPMGTH.
KPMGTH should keep up with all the latest developments to maintain its clientage
and increase its efficiency in work.
108 | P a g e
Recommendation
KPMGTH should hire fresh talented young people with more creative ideas to increase
its potential and growth.
HR department of KPMGTH should be more empowered, so that it can help in

increasing the satisfaction level of employees and can make decisions on its own.
KPMGTH must work with businesses to recapture the confidence of investors, public
and professional service organizations.
Bureaucratic style at KPMGTH should be changed to avoid communication problems.
KPMGTH does not have good pay masters. It should try to improve its Pay structures
to motivate and retain its employees.
KPMGTH should improve the working environment of the offices to motivate its
employees to work harder. Like more resources like laptops should be available.
Cleanliness must be taken into consideration for hygienic purposes.
KPMGTH has stopped providing services in ERP implementation. This is a very

important service which has a high market demand so KPMGTH should consider
providing consultancy in ERP implementation again.
pg. 109
Activities Report
Tasks Assigned
KPMGTH is always in search of interesting and challenging work opportunities
available in the market. For this they keep their eyes open to all the possible business
opportunities available in the market. Further they strive to build a healthy and flourishing
client base and for that a continuous effort is required by the management and the team
members.
For that purpose I assisted my fellow team members in identifying and searching for all
the possible business opportunities for KPMGTH within the period of my internship. I basically
looked into all the newspapers which had a business page and identified the projects which
were according to the skills availability of KPMG.
Further I also looked into certain websites which update possible business opportunities
on a regular basis. There I looked into the relevant project specifications and made a quick
synopsis. Which was then showed to the seniors in my team who selected the relevant projects
to be shown to the management for further screening.
Assisted in the preparation of an Analysis report on listed entities on the KSE 100
index-here I calculated the financial, liquidity, profitability, investment and debt to equity ratios
of some major companies listed on the KSE 100 index.
110 | P a g e
Preparation and circulation of internally generated news reports summaries for the
department on a daily basis as being part of the financial advisory department it was necessary
to be in touch with financial updates of the economy. Here, I included exchange rates of some
major currencies on a regular basis, moreover included daily KIBOR rates in my news update
as well.
Moreover I also kept a check on any business news which could assess that what will
be the investment pattern of entrepreneurs in the Pakistani Economy within the coming period.
Assisted in working on cost and revenue verification activities on behalf of a leading

international healthcare provider on a leading diagnostic lab network in Pakistan. Here I
worked on various assurance procedures to provide the client with assurance about the revenue
and cost over a period of three years.
Assisted in the research work for the preparation of a policies and procedure manual
for a company listed on the stock exchange.
Assisted in making a proposal for a prospective client. Here I worked in addressing the
client about what KPMG will offer them as in Sell the Benefit technique. They were
concerned about the fact that how to address the client and how the choice of choosing
KPMGTH will benefit them in getting the goals they want to achieve.
pg. 111
I assisted in the preparation of a feasibility report for a listed company on KSE-100

Index in which I was to do the Horizontal and Vertical Analysis and identified any significant
or drastic change in any value.
During the time of my internship period I was made responsible for preparing synopsis
of different agreements that includes financial agreements, licenses, borrowings, royalties etc.
I also made synopsis for litigations faced by the client.
Most of the time I was asked to do a research on the background of the client by reading
their documents available online and some specific documents which were confidential and
were just made available to our team for working purpose. This process is also called as client
screening.
In KPMGTH no one can issue any kind of stationary without the authorization of the
departments supervisor or manager. This requisition was charged to the client. I used to make
this requisition and get it signed by the manager or supervisor. After the requisition was signed
I used to go to the photocopier, give him the requisition and then get the stationary for the
department.
While assisting on an assignment I was made responsible for managing and

downloading documents available in the Access room. This access room is KPMGTHs
online folder in which the client uploads all its confidential documents. This folder is locked
and to access this folder one needs to enter the user name and password. This user name and
password was given to me by my manager. This folder contains documents which are only for
internal use of the client and is not made available to the general public. I used to download all
112 | P a g e
new documents uploaded on daily basis and used to save them in folders. Then for each folder
I used to prepare a file and on every document I used to write the date of document being made
available to me.
Quality Control Reviews (QCR) are carried out to ensure that the firm is providing
quality services in accordance with applicable laws of Pakistan. I prepared and maintained a
proper file the client listed on KSE-100 index. This file contained the following documents:
Engagement Letter
Senital Approval E-mail
Minutes of the meetings
Relevant reports etc.
During an assignment I was made responsible for punching all the financial
statements and notes to the accounts on Microsoft Excel. This task made me more familiar and
comfortable with excel.
In the month of April I was assigned on an assignment of fixed asset reconciliation.

I was asked by my supervisor to visit the client to physically verify its fixed assets. I was
provided with a list of fixed assets. I used to mark each asset as I included it in my count. This
assignment looks like an audit assignment but in financial advisory they conducted this task to
confirm the number of fixed assets as the client.
A client in the education sector asked us to make a feasibility of a new project the
client wanted to start. After researching on the background of the client I did a SWOT Analysis
of the project which the client was thinking of starting.
pg. 113
KPMGTH also performs the task of book keeping. Two of KPMGTHs client are those for
whom they maintain their books of accounts. They maintain all the accounts of the client and
whenever the audit is conducted on the accounts of the client, the auditors visit KPMGTH to
conduct the audit. I assisted in maintain the book of accounts of both the clients.
I assisted in an assignment in which they were supposed to do the pricing Analysis of

a client from food industry. Basically they had to calculate the total cost of the food item for
the client.
I have also been a part of due diligence assignment in which I assisted the team in
making the report for the client. They did a lot of research work, studied the data in detail and
performed different types of calculations.
Tasks Achieved
During my internship period in KPMGTH Lahore office I was allotted in the
financial advisory department. This experience helped me in understanding the ins and outs
of a corporate international firm. I learned to communicate with my seniors and juniors. I
was able to apply my studies in the practical assignments which built my confidence on the
knowledge I had. Dealing with clients and meeting the deadlines of assignments was
something I was not aware of but KPMGTH gave me the opportunity to learn how to deal
with clients and how to complete such huge assignments on time. The most unique
experience that I had while working in KPMGTH was of how to work and coordinate in a
team, how is work allocated and completed and how to communicate while working in a
team. This experience made me realize that how difficult it is to earn. I realized it when after
114 | P a g e
working a month from 9:00 am to 6:00 Pm, five days a week I was given a stipend of rupees
2500 only. But overall I learnt many things and had a remarkable experience which will for
sure help me in my future. Please find attached evaluation forms of two of my managers from
our department.
Conclusion:
Chartered Accountancy is the top most profession in Pakistan. All over the world firms
are helping businesses to identify the momentous changes in the global economy and then
respond to those changes appropriately. Everyday people working in KPMG Pakistan add value
to work. They are working hard to enhance the market and by enforcing KPMGs high standard
of integrity.
KPMG values its people and recognizes the fact that they have a very significant role
to play in assuring the authenticity of capital markets while at the same time adding to the
sustainable world
Their success is because of the people who are working for KPMG worldwide and the
distinctive culture they have created. KPMG Pakistan is on the track of progress and prosperity,
it will have to travel a lot in order to have distant competencies. Being an international firm it
has been able to satisfy its customers with the latest technology. The expansion of the network
of KPMG will further enable it to maintain its competitive position.
pg. 115
116 | P a g e
pg. 117
118 | P a g e
pg. 119
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Fakher, Interviewer) Lahore.
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Interviewer)
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http://www.kpmg.com/PK/en/IssuesAndInsights/ArticlesPublications/Documents/KP
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120 | P a g e
Khurrum, M. (2014, April). Accounting System KPMG Taseer Hadi & Co. (Y.
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Wikipedia. (2014, April 12). WikiPedia. Retrieved from Wikipedia:

www.wikipedia.com
pg. 121

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Business Analysis of KPMG Taseer Hadi & Co

Business Analysis of KPMG Taseer Hadi & Co

Registration Number: L1S10BSAA0005

Introduction of the Firm

K stands for Klynveld

P stands for Peat

M stands for Marwick

G stands for Goerdeler

Certified Internal Auditors, Certified Information Systems Auditors, Masters in Business

As KPMGTH is a partnership firm so it is owned by the local partners. KPMGTH is

Values of KPMG Pakistan

How they do business with their clients across the world

e. We are open and honest in our communication sharing information, insight

Principal business themes

Work together to develop an increasingly cohesive business unit

Increase the effectiveness of the regions approach to markets.

Align with global HR policies and procedures.

Achieve global standards of infrastructure.

Pakistan Value Charter

We will acknowledge and reward people who make positive contributions

Worlds most attractive employer after google-2012

Human Rights Campaigns Corporate equity Index-2011

Diversity Inc Magazine Top 50 Companies-2011

Fortune 100 Best Companies to work for-2011

Companies that care honor roll-2011

Working mother 100 Best Companies top ten-2010

KPMG Taseer Hadi & Co Culture

Leave fare assistance

Wishes for special days (birthday, marriage)

Special awards for good performers

Work culture of KPMGTH is deep seated in their values. It provides an environment

KPMGs Global Code of Conduct

Sets out KPMGs commitments

Encourages us to act as role model

Defines how we perform as individual

Promotes ethical behavior

Drive quality by developing and applying appropriate methodologies and procedures.

KPMGs member Firms clients

Act lawfully, ethically and in public interest.

Maintain independence and objectivity and avoid actual or perceived conflict of

Promote member firms services honestly and compete fairly.

Being in KPMG, an individual is responsible for the following

Consult with others

An individuals responsibilities as a leader

Support your team

Develop your team

Uphold exemplary standards

Exercise your judgment

Help their people to be objective, ethical and professional.

Champion an inclusive and collaborative culture that is free from bullying,

Respect the confidentiality of their peoples personal data.

Provide a safe and healthy work environment.

Maintain a just and fair approach of remuneration.

Poor work performance.

Unauthorized absence from work.

Persistently reporting late for assignments.

Being deliberately uncooperative.

Violation of work place rules.

Breach of Ethics & independence rules

Breach of clients confidentiality.

Censure/ expulsion by a relevant professional body

Physical violence, disorderly/threatening conduct at work

Dishonesty, theft, or fraud.