Despite a weak economy and a year of unprecedented challenges for the accounting profession, KPMG International reported revenues of $10.72 billion for the fiscal year ended September 30, 2002, an increase of 3.9% over the prior year.

A breakdown of global revenues shows 3.4% growth to $6.33 billion in assurance services, 2.7% growth to $3.04 billion in tax and legal services, and 8.6% growth to $1.35 billion in financial advisory services (FAS). Geographically, the strongest regional gains were seen in Europe, the Middle East and Africa, where revenues increased 8.3% to $5.46 billion. In the Americas, revenue decreased by 0.9% to $4.27 billion.

Mike Rake, chairman of KPMG International, noted that the current environment for the industry is unprecedented, with new government oversight of the accounting profession in the U.S., persistent public mistrust of corporate leadership and accountants, and continued regulatory uncertainty.

"Looking ahead," said Mr. Rake, "we remain committed to offering our clients a complementary range of multi-disciplinary skills including assurance, FAS, tax and legal services." He added that one of worldwide organization's key goals for the coming year is to be a leader in restoring the accounting profession's credibility.

KPMG International CEO Robert W. Alspaugh added that the firm will continue to strengthen its network of firms through quality performance reviews of engagement performance, use of its independent global risk management function to assure that local firms are in compliance with membership requirements, and continued emphasis on strengthening the depth of its professional talent.