Public Accounting and the Indiana University Student
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Public Accounting and the Public Accounting and the Indiana University StudentIndiana University Student
September 25, 2003
Indiana University
BKD, LLP
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OverviewOverview
I. Public vs. Private Accounting
II. Regional vs. Big Four Accounting Firms
III. What Recruiters Look For In College Recruiting Candidates
IV. Typical First Year Responsibilities
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Public vs. Private Accounting
• Public Accountants – Perform a broad range of accounting, audit, tax, and consulting activities for corporations, governments, nonprofit organizations, and individuals.
• Private Accountants – Record and analyze the financial information of the companies for which they work.
• First Job Statistics: (CPA Journal)
– 55.8% Public Accounting– 30.1% Private Industry– 8.2% Governmental and Not-for-Profit Accounting– 5.9% Other Accounting
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Public vs. Private Accounting
• Public Accounting– Assurance
– Tax
– Consulting
• Ease of moving from public accounting to private accounting• Occupational mobility• Variety in:
– Type of work
– People you interact with• External• Internal
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Public Accounting Career Track
Partner
Staff ConsultantStaff
Senior ConsultantSenior
Supervising ConsultantSupervisor
Managing ConsultantManager
Senior Managing ConsultantSenior Manager
ConsultingAudit & Tax
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Public vs. Private Accounting
• Private Accounting• Financial Reporting
– Corporate Finance• Treasurer
• CFO
• Controller
• Managerial Reporting– Cost Accounting– Internal Audit– Business Development
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Public vs. Private Salaries (Source: Indiana CPA Society)
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Regional vs. Big Four Accounting Firms
• Regional Accounting Firms– Client Base:
• 95% medium to small
• 5% large (most SEC)
– Many jobs that are shorter in duration– Wide variety in types of clients– Travel is limited, but available if desired – Making Partner
• Average length of time is 12 years
• Chances are 1 out of 20
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Regional vs. Big Four Accounting Firms
• Big Four Accounting Firms– Client Base:
• 85% large corporations (most SEC)
• 15% medium to small
– Fewer jobs that are longer in duration– Less opportunity for exposure to wide variety of clients– Significant travel – Making Partner
• Average length of time is 18 years
• Chances are significantly lower
• Upper level partner’s compensation (Equity and Non-Equity)
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Public Accounting Report’s Top 10 for 2003
U.S.
Net Revenue Number Number Revenue Split
Firm (in millions) of Partnersof
Offices A&A Tax MCS
1 Deloitte & Touche (New York) 5,900.0 2,618 81 36 21 34
2PricewaterhouseCoopers (New York) 4,715.0 2,027 113 59 29 9
3 Ernst & Young (New York) 4,515.0 2,118 86 59 38 0
4 KPMG (New York) 3,170.0 1,535 122 63 37 0
5 RSM McGladrey (Minneapolis) 580.0 498 86 40 38 20
6 Grant Thornton (Chicago) 400.0 312 51 50 34 16
7 BDO Seidman (Chicago) 353.0 281 37 41 41 18
8 Crowe Group (Indianapolis) 247.3 104 16 24 19 57
9 BKD (Springfield, MO) 215.7 194 27 42 36 22
10 Moss Adams (Seattle) 175.0 182 24 33 38 29
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What Accounting Recruiters Look For In Candidates
• Communication skills• Enthusiasm• Creativity• Problem solving ability• Teamwork skills • Highly motivated• Excited about the firm
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Typical First Year Responsibilities
• Audit– Observe inventory test counts– Perform tests of internal controls– Draft financial statements and auditor’s reports– Develop recommendations for improving client productivity – In-charge some smaller engagements
• Tax– Prepare individual, corporate, partnership, estate, trust, and tax-
exempt entity returns– Draft responses to federal, state, and city notices from taxing
authorities– Research tax issues– Prepare tax projections under multiple income and deduction
scenarios