I must apologize for taking the recruiting slogan of one of the Big 4 accounting firms. This post will discuss the qualities that are in demand in the audit profession. A later post following this one will focus on interests and personality fit.
What employers look for in a candidate (The following qualities can apply to all types of professions, but I have also put them in context with the profession):
Attention to detail - You go through stacks of working paper everyday. Sometimes, it is the ability to spot small inconsistencies that lead to a discovery of big errors.
Analytical skills - is not the ability to be able to perform complex mathematical calculations. It is the skill in critically analyzing whether a process or calculation is logical. It is the ability to critique the accuracy of calculations and other people's analysis. Alertness to errors is reduced when one is evaluating an analysis rather than perform the analysis him/herself for the first time, especially under stressful or tiring situations.
Problem solving - this is the ability to generate your own procedures or satisfy an objective when new issues arise (which have not been addressed in prior year files). It is also the ability to identify the source of information. Knowing where to find the right information is an important (and a developed) ability of an auditor.
Team-player - if you are not good in working with others, don't bother to look into this profession. There are very few audits that involve a one-man team. 2 to 3 years into your career, you might be asked to lead fellow colleagues into an audit. Patience is key in the role. You can easily spend 30-50% of your time helping out your juniors or answering answers. This leaves you with little time to do your own work. Therefore, time- and project- management skills are important.
Communication - both written and spoken. Strong written skills in this field means following proper working paper formats, being able to express your procedures and conclusions in a short, objective and precise manner. Spoken communication is more important. A big part of it relates to client interaction skills. We are inherently put in an unfavorable position as our job is to uncover the client's mistakes. Our existence also impede's the client's productivity. It is 100% understandable that the client employees hate auditors. It is up to your attitude and your relationship management skills to reduce the tension between the two parties. Remember, partners and managers spend years to nurture a working relationship with the client. You do not want to be the one to add a blemish to this relationship.
Thursday, June 24, 2010
Tuesday, June 8, 2010
Year-end Performance ratings
The recent stir in large accounting firms is that the year-end managers' consensus meeting is just around the corner. In most of the Big 4, these meetings are held annually by managers. In this meeting, managers will discuss the performance and growth of each staff and senior and will determine a rating for each of them.
There has been much speculation among the staff and seniors about who will get what rating, who will get double-promoted, etc etc. In my opinion, seniority play a bigger role than it should in terms of promotions. It is in fact very common to see some Staff 1s outperform some Staff 2s and certain members in the Staff levels outperform those in the senior levels. The harsh reality of life is: your relationship with the higher-ups have a significant role in defining your performance rating.
You may see two Staff: one performing over expectations, but does not spend any effort in developing relationships with his colleagues (specifically managers); the other staff performing poorly, but has maintained a positive impression amongst managers and seniors. It will not be surprising to see them both getting the same rating. The over-performing individual would probably be disgruntled, considering the greater amount of time and effort put in to make a bigger contribution to the firm.
I am not saying that one should forget about his/her work ethics in an attempt in becoming a social butterfly in the office, but relationships should not be taken lightly. Being able to please and impress is just as important after securing a job as it is during the job-search phase. There is a saying: "it is not what you know that matters, but who you know." Despite down-playing the significance of actual productivity, this saying has some validity as it correctly emphasizes the importance of relationships and networks.
There has been much speculation among the staff and seniors about who will get what rating, who will get double-promoted, etc etc. In my opinion, seniority play a bigger role than it should in terms of promotions. It is in fact very common to see some Staff 1s outperform some Staff 2s and certain members in the Staff levels outperform those in the senior levels. The harsh reality of life is: your relationship with the higher-ups have a significant role in defining your performance rating.
You may see two Staff: one performing over expectations, but does not spend any effort in developing relationships with his colleagues (specifically managers); the other staff performing poorly, but has maintained a positive impression amongst managers and seniors. It will not be surprising to see them both getting the same rating. The over-performing individual would probably be disgruntled, considering the greater amount of time and effort put in to make a bigger contribution to the firm.
I am not saying that one should forget about his/her work ethics in an attempt in becoming a social butterfly in the office, but relationships should not be taken lightly. Being able to please and impress is just as important after securing a job as it is during the job-search phase. There is a saying: "it is not what you know that matters, but who you know." Despite down-playing the significance of actual productivity, this saying has some validity as it correctly emphasizes the importance of relationships and networks.
Friday, May 28, 2010
Discretion vs Openness
A lot of seniors tell me that if you are writing an "extracurricular" exam, such as the CFA, you should keep it on the "DL" and not be so vocal about it. I don't promote the fact that I'm pursuing the designation, but when asked why I took time off, I don't feel the need to lie about the fact that I took time off to prepare for the exam. There have been 2 opposing arguments on this matter:
1. CA firms train people to become tax professionals and auditors, and the CFA (or other "extracurricular" items) have no place in such firms. This is especially true in smaller firms as tax/assurance are the only services provided. Your decision to pursue the CFA is an indication that you have no interest in staying in the firm.
2. Personal career interest should be respected and the firm should encourage staff in exploring their career opportunities. This may sound stupid, but has some legitimacy especially in big firms. Big firms provide advisory services, many of which are outside the scope of the core competencies (accounting/audit/tax). *I do realize that the CA profession has expanded their competencies to include finance, risk management etc. But let's face it, audit and tax are still the main functions in a CA firm and this fact will not change in the near future.* Anyways, back to my point, advisory needs people with a finance background. IT risk management requires people with computers science/math/engineering background. In order for a professional services firm to be complete, they need people with expertise outside of the bread and butter competencies. Also, a diversity of expertise is what empowers a professional services firm to capture additional market share. I notice that such pursuance in other career developments do not hinder performance on the job. In fact, a lot of these individuals are top performers. It has something to do with the fact that these individuals have a sense of direction and have the capacity to manage both their job and their extracurriculars.
Contrary to popular belief, not all of these individuals have a time line in departing the firm. I, for one, have no plans on doing that. I enjoy working in a big CA firm because I'm surrounded with people in my age group, all of my colleagues are intelligent (we take this for granted), and the opportunity to network is huge.
We can also put a spin on the employers' perspective. Instead of worrying about the fact that these individuals will be lost, time can be better spent on keeping a good relationship with these individuals. A lot of them are overachievers, and if they really leave the firm, chances are they will climb up corporate ladders quickly and become links to potential clients.
1. CA firms train people to become tax professionals and auditors, and the CFA (or other "extracurricular" items) have no place in such firms. This is especially true in smaller firms as tax/assurance are the only services provided. Your decision to pursue the CFA is an indication that you have no interest in staying in the firm.
2. Personal career interest should be respected and the firm should encourage staff in exploring their career opportunities. This may sound stupid, but has some legitimacy especially in big firms. Big firms provide advisory services, many of which are outside the scope of the core competencies (accounting/audit/tax). *I do realize that the CA profession has expanded their competencies to include finance, risk management etc. But let's face it, audit and tax are still the main functions in a CA firm and this fact will not change in the near future.* Anyways, back to my point, advisory needs people with a finance background. IT risk management requires people with computers science/math/engineering background. In order for a professional services firm to be complete, they need people with expertise outside of the bread and butter competencies. Also, a diversity of expertise is what empowers a professional services firm to capture additional market share. I notice that such pursuance in other career developments do not hinder performance on the job. In fact, a lot of these individuals are top performers. It has something to do with the fact that these individuals have a sense of direction and have the capacity to manage both their job and their extracurriculars.
Contrary to popular belief, not all of these individuals have a time line in departing the firm. I, for one, have no plans on doing that. I enjoy working in a big CA firm because I'm surrounded with people in my age group, all of my colleagues are intelligent (we take this for granted), and the opportunity to network is huge.
We can also put a spin on the employers' perspective. Instead of worrying about the fact that these individuals will be lost, time can be better spent on keeping a good relationship with these individuals. A lot of them are overachievers, and if they really leave the firm, chances are they will climb up corporate ladders quickly and become links to potential clients.
Saturday, May 15, 2010
Introductions
Upon closing of an engagement, I have once again found myself sitting in front of my computer at home on an early Saturday morning. Family, professors and bosses often suggest that I should spend some time to contribute back to the community. So here I am, starting up a blog targetted for those who are interested in knowing how it is like to be a public accountant.
Having made transitions from a local CA firm to a regional/mid-size firm, and then to a multinational Big 4 firm, I believe that I have a lot of perspective to offer to those who are interested pursuing the profession.
My experiences are mainly in tax services (past) and assurance (current).
My future posts will cover different aspects of public accounting, including: education, job search, networking, career prospects, work-life, and compensation.
Feel free to leave comments and questions and I will try my best to address each and every one of them.
Stay in touch.
Having made transitions from a local CA firm to a regional/mid-size firm, and then to a multinational Big 4 firm, I believe that I have a lot of perspective to offer to those who are interested pursuing the profession.
My experiences are mainly in tax services (past) and assurance (current).
My future posts will cover different aspects of public accounting, including: education, job search, networking, career prospects, work-life, and compensation.
Feel free to leave comments and questions and I will try my best to address each and every one of them.
Stay in touch.
Subscribe to:
Posts (Atom)