In a move generally interpreted as a first step towards taking its company public, KPMG announced on Monday the formation of KPMG Consulting, a separate corporate entity, which will handle the business consulting side of the business.

KPMG Consulting will be 80.1 percent owned by KPMG and its partners, and 19.9% owned by Cisco Systems, who last August announced an investment of $1 billion in the Big 5 firm.

The incorporated unit consists of the consulting division from the United States and Mexico. Other KPMG consulting units are expected to join KPMG Consulting later this year.

Why all the fuss?

For the last few months, the SEC has been coming down strong on finding ways to ensure auditor independence, and separating any business activities which could hamper independence. Behemoth accounting and consulting firms are all exploring ways to separate their two divisions.

The SEC aside, KPMG has been looking at ways to bring the accounting and consulting giant to the public marketplace, selling shares and raising the capital on the public market needed to grow to meet the growing demands of the marketplace.