KPMG is the abbreviation for the names of the firm's principal founding members. The background of these names also provides a brief history of the firm.

“K” stands for Klynveld. Piet Klynveld was the founder of the Dutch accounting firm Klynveld Kraayenhof & Co., now KPMG Netherlands which was founded in 1917. In 1979 Klynveld joined forces with Deutsche Treuhand-Gesellschaft and the international professional firm McLintock Main Lafrentz to form Klynveld Main Goerdeler (KMG).

“P” is for Peat. William Barclay Peat founded the accounting firm William Barclay Peat & Co. in London in 1870.

“M” stands for Marwick. James Marwick founded the accounting firm Marwick Mitchell & Co. with Roger Mitchell in New York City in 1897. In 1911 William Barclay Peat & Co. and Marwick Mitchell & Co. joined forces to form Peat Marwick Mitchell & Co. later to become Peat Marwick International (PMI).

“G” is for Goerdeler. Dr. Reinhard Goerdeler was for many years chairman of Deutsche Treuhand-Gesellschaft and later chairman of KMG. He is credited with laying much of the groundwork for the KPMG merger. In 1987 PMI and KMG embarked upon the accounting profession's first mega-merger and formed KPMG.

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