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KPMG’s combined revenues compared to $16.9 billion for the prior fiscal year, representing growth of 17.4 per cent in US dollars and growth of 12.7 per cent in local currency terms.

Timothy P. Flynn, chairman of KPMG International said that the globalisation of the world’s economy, the dynamic regulatory environment and the market pressure on companies to transform themselves all contributed to increased demand for KPMG’s services.

Service line revenues

Growth for audit services was particularly strong in Asia Pacific. Revenues in fiscal 2007 among the emerging economies increased 13.3 per cent to $9.39 billion.

During the year, KPMG LLP, the US firm, regained the number one position as the auditor for the largest US-based bank audits, ranked by the share of bank assets audited and the number of audit clients among US public accounting firms.

Advisory services experienced growth in all regions and grew fastest at 22.2 per cent to $6.43 billion, fuelled by M&A activity, heightened regulations and demand for performance improvement.

Combined revenues for tax services grew 20 per cent to US$3.99 billion. KPMG said that an ever-increasing focus on risk and controls around tax, coupled with a more rigorous regulatory environment, increased the demand from multinational clients for such services as international tax, transfer pricing and trade customs assistance, and tax risk and controls assessment services.

Asia Pacific region

The Asia Pacific region’s revenue grew 21.6 per cent to $2.55 billion in the fiscal year to 30 September (FY07), with both Japan and China showing particularly strong growth.

In the Asia Pacific region, the influence of Private Equity funds, strong overall M&A activity and the maturation of the capital markets have been providing robust opportunities for all of KPMG’s services.

Multinational companies are capitalising on the investment in the booming domestic economies of China and Vietnam, and back office and IT outsourcing operations are expanding in Malaysia and the Philippines.

KPMG said it continued to invest in and grow its national practices to support the global network. In China and Hong Kong combined, KPMG has grown headcount 32 per cent in the past year to 7,000 professionals.

KPMG opened new offices in Fuzhou, Qingdao and Shenyang. The KPMG member firm in Japan also experienced rapid growth in FY07, adding a significant number of new clients, and increasing headcount 20 per cent this year.

EMA region

For the EMA (Europe, Middle East and Africa) region, combined KPMG member firm revenues increased 20.9 per cent to $10.67 billion.

KPMG member firms in the UK, Germany and Switzerland agreed to merge to form KPMG Europe LLP, which now has a combined total of more than 18,000 partners and staff serving clients.

Across the EMA region, results were particularly strong in Central and Eastern Europe, India and the CIS, as well as such national markets as Ireland and Luxembourg.

Anticipating further growth in Turkey, KPMG’s local headcount was increased 43 per cent. In India, KPMG opened new offices this year in Pune, Hyderabad and additional markets, and headcount was increased 32 per cent.

In the Americas region, FY07 revenue grew 10.6 per cent to $6.59 billion. The US firm posted double-digit growth with strong growth across all three of its interdependent businesses. Latin America also recorded robust growth of 24 per cent, with headcount increasing 23 per cent in Brazil. KPMG said it increased aggregate revenues by 41 per cent in the BRIC countries (Brazil, Russia, India and China) in the past year.

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