Accounting Careers September 22, 2005 Indiana University BKD, LLP

Overview 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

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

Public vs. Private Accounting Public Accounting –Variety in: Type of work –Assurance –Tax –Consulting People you interact with –External –Internal –Ease of moving from public accounting to private accounting –Occupational mobility

Public Accounting Career Track Partner Staff ConsultantStaff Senior ConsultantSenior Supervising ConsultantSupervisor Managing ConsultantManager Senior Managing ConsultantSenior Manager ConsultingAudit & Tax

Public vs. Private Accounting Private Accounting –Financial Reporting Corporate Finance –Treasurer –CFO –Controller –Managerial Reporting Cost Accounting Internal Audit Business Development

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 Other criteria

Regional vs. Big Four Accounting Firms Big Four Accounting Firms –Client Base: 85% large corporations (most SEC) 15% medium to small –Larger clients with longer engagement durations –Less variety in types of clients –Significant travel –Making Partner Average length of time is 13 years Upper level partner’s compensation (Equity and Non-Equity) Other criteria

Regional vs. Big Four Accounting Firms Current Issues: Sarbanes-Oxley Big Four: – Focus centering on large SEC Clients – Divesting consulting services to middle market Regional Firms – Gaining client relationships in middle market – Providing resources to meet SOX 404 standards

Public Accounting Report’s Top 10 for 2005 (Hudson Sawyer Marketing) U.S. Net RevenueNumber Revenue Split Firm(in millions) of Partners of OfficesA&ATaxMCS 1Deloitte & Touche 6, , Ernst & Young 5, , PricewaterhouseCoopers 5, , KPMG 3, , RSM McGladrey 1, Grant Thornton BDO Seidman CBIZ / Mayer Hoffman McCann Crowe Group BKD

What Accounting Recruiters Look For In Candidates Communication skills –Verbal –Non-verbal Enthusiasm Creativity Problem solving ability Teamwork skills Highly motivated Excited about the firm

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

Any Questions?