4.

0 INDUSTRY BACKGROUND

William Welch Deloitte established a business in London, United Kindom, in 1845. First
independent auditor of a public company, namely the Great Western Railway, was appointed by
Deloitte. Later, in 1880, he established a business in New York.

Deloitte opened a Wall Street branch office in 1890, with Edward Adams and P.D. Griffiths
serving as branch managers. That was Deloitte's first international undertaking. Other locations
were quickly opened in Buenos Aires and Chicago. P.D. Griffiths joined the London office as a
partner after moving back from New York in 1898.

Haskins & Sells was founded in New York in 1896 by Charles Waldo Haskins and Elijah Watt
Sells. Later, it was described as "the first significant auditing firm to be founded in the country
by American accountants rather than British accountants."

George Touche opened an office in London in 1898 before partnering with John Ballantine
Niven to found Touche Niven in the Johnston Building at 30 Broad Street in New York City in
1900.

Colonel Arthur Hazelton Carter, managing partner of Haskins & Sells and president of the New
York State Society of Certified Public Accountants, testified before the U.S. Senate Committee
on Banking and Currency on March 1, 1933. Carter assisted in persuading Congress that public
businesses should be required to conduct independent audits.

George Bailey, a Detroit accountant and the American Institute of Certified Public Accountants'
first president at the time, founded his own company in 1947. The new company enjoyed such a
good start that the partners combined forces with Touche Niven and A. R. Smart less than a year
later to become Touche, Niven, Bailey & Smart. The organisation under Bailey's direction
expanded quickly, in part due to the establishment of a specialised management consulting
function. Additionally, it developed stronger ties with two organisations founded by George
Touche, Touche Niven's co-founder: Ross in Canada and George A. Touche in Britain. The
company changed its name to Touche, Ross, Bailey & Smart in 1960, and then to Touche Ross
in 1969. Tohmatsu Aoki & Co., a Japanese company established in 1968 by Nobuzo Tohmatsu,
joined the Touche Ross network in 1975. Robert Trueblood, the chairman of Touche Ross,
served as the chairman of the group that made the recommendation for the formation of the
Financial