Professional Opportunities Orientation Program Indiana University

Careers in Public Accounting Firm choice Career path Changing environment

Firm choice Big "4" Firms (KPMG, PWC, E&Y, D&T) Middle tier firms (GT, BDO, Crowe, McGladrey, American Express) Local accounting firms

Big "4" Firms Large, national and multi-national firms Primary focus is full service to the Fortune 1000, but will also have a "middle market" or entrepreneurial division Several opportunities for career paths outside the general audit and tax path Tax is divided between compliance and consulting Opportunity to work overseas

Middle tier firms Vary in size Some are national and multi-national, some are regional in nature Primary focus is full-service to middle market companies both public and private Tax professionals will do both compliance and consulting Opportunities exist to work outside the typical audit and tax areas, but not to the extent as at the Big 4 Opportunity to work overseas in some cases

Local accounting firms Small one/two office firms Primary focus is serving the accounting and tax needs of the local small business Careers in the smaller firms will entail working in both tax and audit/financial accounting

The Career Path in Public Accounting Assurance and Tax Professionals Associate Senior Associate Manager Senior Manager Partner

Associate One to two years. Responsible for tax return preparation and/or low risk areas of the audit assignment. Assignments can include anything, including making copies In the second year, responsibilities will increase and in some cases will be responsible for an engagment

Senior Associate After two years Senior Associate, Senior, In-charge Responsible for planning, executing and wrapping up engagements Main client contact and the driver of the audit/tax return process Completion of job including financial statements Supervise, train, and review the work of associates

Senior Associate (continued) Research and summarize technically complex issues Assist manager with day to day client relations Knows the most about the job/project

Manager Usually after 5 years Three basic roles: –Core Business Role Manage multiple engagements Detail review of work papers Day to day client relations Train and supervise senior and staff Research and conclude on technical issues and questions from clients

Manager (continued) –Human Resources Role Recruiting Advise, Mentor, Coach staff Teach staff through continuing professional education classes

Manager (continued) –Sales and Marketing Role Network with referral sources: attorney’s, bankers Participate in proposal writing and presenting Generate leads for new business Belong to professional organizations: AICPA, State Society’s

Senior Manager 8 to 10 years Same responsibilities as manager except time split is different More time is spent in Sales and Marketing role than any other Senior Managers may have more administrative duties associated with how the department works as a team

Partner 12 to 15 years Final review of audit or tax return Sign-off of audit report or tax return Maintain high-level of client relations: attend Board Meetings, Audit Committee meetings Help client with highly complex issues: strategic planning, mergers, acquisitions

Partner (continued) Generate client leads Prepare proposals and lead proposal meetings Speak at professional organizational meetings Teach continuing professional education seminars

Changing environment Public perception Sarbanes-Oxley Act –what services can a public accounting firm perform –how are public accounting firms going to be regulated –internal control focus Changes at the SEC, NYSE and other exchanges