Category: Big 4

If it happens at a Big 4 accounting firm, we’re talking about it here.

Entry-Level Auditor Just Can’t Admit He Wants To Work For a Mid-Size Firm

Ed. note: Find yourself caught at a crossroads unsure which path to take? Feeling lost and hopeless? Just want to know your lucky lotto numbers for next week? Hit us up and the career advice brain trust will take your hand, restore your faith, guide you down the path of greatness and even pick out what you should wear tomorrow.

Hi,

By the end of the week, I am going to need to make a decision on which offer to accept. I am applying for entry-level auditing positions, and received my first offer last Friday. I also anticipate receiving two more by Thursday. The one I recently received is from a mid-size regional firm that specializes in an industry that I find to be very interesting. I alsoith their staff and think I would really enjoy myself there. One of the offers I anticipate receiving on Thursday is from a Big 4 firm.

The biggest issue for me it seems is which job will put me in the best position 3-5 years from now. There is a greater than 50% chance that I will need to move in the next few years, and I keep going back to the fact that working for a Big 4 will give me the most options. The mid-size firm does some work nationally, and may connect me with other public accounting firms around the country, but that is about the extent of it. Is working at a Big 4 that big of a deal to future employers? If I plan to make a career in public accounting, is it easy to switch from one mid-size firm to another – or am I more likely to get recognized by a mid-size if I’m coming from a Big 4?

I have been a regular reader of Going Concern over the past few months, and appreciate the depth of knowledge you and the readers have, so I’m hoping you can help.

#1) Thanks for the kind words but maybe you need to spend a few more months on this website if you actually do not possess the knowledge to answer your own questions for yourself, namely the ones that question just how big of a deal Big 4 is on your resume. We at least hope when you say “mid-size” you mean a truly mid-size and not a small, regional firm that just so happens to have a national client or two. At least you’ve got hope for flexibility in that case.

#2) Now that you’ve thought about it for a moment, slapped yourself upside the head and come to the realization that yes, Big 4 on your resume really is that big of a deal (how we feel about that is irrelevant for this discussion, we are not talking about the Kool-Aid itself but simply the effects of said Kool-Aid), the question is what you want to do in the next several years. You should also realize from your short time on this site that few public accounting grunts actually dedicate 3 – 5 years of their life to the firm. 2 years in Big 4 is sufficient to get your CPA, get some good connections and earn a solid item on your resume.

However, you note part of the mid-size appeal to you is the opportunity to work close to an industry that interests you. It’s awesome that you are aware enough of what you like to think in these terms but what happens if you turn down Big 4 for this mid-size option only to find out this specialization is not at all interesting to you? Are you 100% positive that the Big 4 opportunity wouldn’t allow you the same close quarters with an industry you find appealing?

When you say you hit it off with the mid-size staff, do you mean their actual staff or just the hot recruiting bubbleheads hired to lure you into their trap? If you mean actual staff, then I think your decision here is clear. You seem to have a good feeling about the mid-size opportunity and are simply confused because you have bought into the idea that there is nothing like Big 4. That isn’t a myth, but it doesn’t mean that you’re doomed to a career of mediocrity if you forgo the Big 4 route for something that you feel fits you better.

You probably already know all of these things and didn’t really need to email us to ask. If your heart is telling you go mid-size, do it. It isn’t going to make you a public accounting pariah, though it may limit your opportunities later on slightly. Note I said slightly. You will not be relegated to some public leper colony for being branded with the curse of anything but Big 4. On the other hand, Big 4 might steal your soul and you could find yourself suicidal before you are anywhere near to the two year mark just for the sake of a few extra opportunities and a nice resume item later on down the road.

Is that a risk you are willing to take? Only you can decide that. I’m pretty sure we have at least one or two mid-size staff lurking around here to offer you some more specialized advice based on their experiences beyond what I’ve just suggested to you (just ignore GT Partner, who is an obvious troll). Good luck.

PwC Is Still Looking For (Other Big 4’s) Talent

We didn’t say poaching. But if we did say poaching, we’d also mention PwC is pretty damn good at it.

A non-PwC but Big 4 tipster shares an unsolicited email received on LinkedIn. Names have been redacted to protect the innocent (and guilty):

Significant Audit Opportunity with PwC in Chicago!
Dear ______,

Hello! I took some time to review your profile and felt that it would be mutually valuable for us to connect. I am a the manager of the talent acquisition team for our Assurance group at PwC, and we are currently experiencing substantial growth in this area across the US. In fact, our Chicago region ranked # 1 out of 6 markets with respect to growth in 2010.

Therefore, I’d appreciate the opportunity to set up some time with you to have a dialogue around industry and marketplace trends and PwC’s current expansion plans.

Even if you are not currently exploring outside opportunities, I would welcome the chance to network with you. Alternatively, if you know of anyone else who is open to considering new ventures, please feel free to pass on my details. With all the changes going on in the industry, especially at PwC, it’s always good to do a little information gathering.

Please feel free to contact me, or _____, Experienced Recruiting Associate – Assurance, at________ or at _______.

I look forward to hearing from you.

Is it just me or is “a little information gathering” a totally creepy proposition? And really?! “Significant” position? That’s the best they could do? I’m sorry but if I were a Big 4 grunt happy with my employer, it would take more than “significant” to get me to double cross them by abandoning them for the enemy.

Of course, this teaches those of you miserable in your current positions that it is important to have an updated LinkedIn presence that will draw in those anxious recruiters in like flies to Caleb’s armpits after a marathon yoga session.

Go get ’em, PwC!

Ex-Marine Who Missed Internship Deployment Looking For His Next Assignment

Do you guys ever get an insidious sense of deja vu when reading some of these advice posts? I know I do. Anyway, here’s another lost little sheep looking for a sense of direction in this big scary world. If you’re feeling lost, hopeless, confused or otherwise unsure, hit us up with your issue and we’ll do our best not to make fun of you in front of everyone.

Dear GC,

I have a situation that may be just a little bit different than most college undergraduates but can’t be the only one in this situation. I attend a small private business sch I am a Marine Corps veteran of 4 years and currently using the G.I. Bill as an undergraduate accounting student with a 3.62 GPA. I am in my second year; however, this is my 4th semester and because I do summer semesters as well and I got 21 credits from military experience, I am right along with the Juniors in terms of graduation date. In fact I will have more credits than them when they graduate needing only 15 more to get the 150. The problem arises in me being ahead, yet behind. I am far ahead of the the sophomores, yet a little behind the juniors in regards to accounting courses completed. I am taking Intermediate I and AIS this semester and Intermediate II and Tax in the Spring. I thought because I didn’t have that many accounting courses completed going into this semester that I should wait to apply for internships, especially Big 4. Then I found out that the most accounting firms around here do all of their recruiting in September. Even though Deloitte and PwC are the only big 4 firms recruiting at my school. So I started applying for internships in October to smaller firms and filling out talent profiles on the Big 4 websites. I do plan on attending University of Pittsburgh’s MAcc 1 year program after graduation so I would in a sense have another summer opportunity to get an internship. My question is, should I in the meantime try and get an internship doing individual tax returns or private accounting at a chain retail company? (I have offers for both) Ideally I want something in Public, and eventually that is what I want to; however, would either of those internships help me at all in the long run towards getting an internship with the Big 4 next year? Also like I said only those 2 seem to recruit at my school. Is there anyway to really have a chance at E&Y or KPMG? Thank you in advance.

First off, thank you for your service to this country. My grandfather was a Marine (enlisted just before the end of WW II and missed the action), so out of respect to you for your service, I’m not going to make an excessive number of comments about how much editing I had to do to make your letter readable. But I will make a humble suggestion (in case you weren’t just being sloppy given who you were emailing), please tighten up your writing a bit before you go out there sniffing for Big 4 gigs. Granted, most recruiters can’t spell recruiter but that doesn’t mean you shouldn’t be putting your best foot forward here.

Now that we got that out of the way, can I ask you something? Why are you so dead set on the Big 4? You’re not actually planning on spending your entire career there, are you? It is unclear from your email why you want to be in the Big 4 so bad, so we’re going to assume here that either you drank the Kool-aid or don’t realize that there are a myriad of other opportunities for someone with your background.

Coming from a small school with low recruitment and boasting a 3.62 GPA probably won’t make you stand out on any HR desks anytime soon but the tide could definitely turn when you get in to the University of Pittsburgh MAcc program, assuming you do well and are able to attend recruiting events that are likely more active than the ones at your current school. As you noted, this is good. Also good: your military service (they eat that stuff up, it shows an ability to take orders and not revolt) and the fact that you will definitely be CPA eligible from the moment they bring you on.

What’s the rush in the meantime? Are you looking for the experience? Trying to get your foot in the door in public? Have bills to pay? Just want to get out of the house? You have plenty on your plate (not to mention the CPA exam ahead of you), if I were you I’d just focus on school for now instead of considering doing tax returns in your spare time. Unless that’s what you want to do with the rest of your career.

Since many accounting students participate in VITA anyway, telling recruiters you interned on tax returns probably isn’t going to earn you many points. And unless the “private accounting” gig involves work under a licensed CPA that you can use toward your experience requirement for CPA licensure, I wouldn’t bother.

Comment section is open for the Peanut Gallery’s (much appreciated) two cents.

PwC India Consultant Did Not Technically Die From Work-Related Hazards

Over the weekend, we got news that a 34-year-old PwC India senior consultant was found dead at his Calcutta home. A maid noticed smoke and alerted the man’s parents, who lived downstairs. When the parents rushed into the room, they found their son’s bed partially in flames. Police and fire department officials initially suspected Sayan Chowdhury died of electrocution after discovering his charred body lying close to his charging laptop and iPod, headphones still in his ears. Police believe the man fell asleep with the laptop on.

“The preliminary post-mortem suggests he died of carbon monoxide inhalation, apparently while asleep,” joint commissioner of police Damayanti Sen said.

A friend told The Telegraph (India) that Chowdhury was “a very bright professional and had been rising fast in the organisation since switching from Cognizant Technology Solutions.” He leaves behind a six month old daughter and a wife, who also happens to work for PwC.

It is suspected at this time that Chowdhury died of carbon monoxide poisoning after the laptop charger short circuited in his tightly closed bedroom. The victim’s wife and newborn daughter were not in the home at the time, as they have been staying with his wife’s parents, who have been helping to care for the baby.

Experts suggest that it is possible the adapter attached to the power supply cord may have failed, leading to a 230-volt alternating current surge into the laptop, turning it into a death trap. Or, the battery may have got overcharged and exploded, spilling lethal chemicals on Chowdhury. Aside from the short circuit scenario, investigators have not ruled out the possibility that the fire and subsequent fatal CO inhalation was caused by a burning cigarette. “To identify the source of the CO, we have to wait for the forensic reports. The state forensic science laboratory officials collected samples of charred wire, the sample of half-burnt cigerettes,” an officer said.

What is the lesson here, kids? Well for one, don’t work too hard. Two, don’t leave your laptop on the charger. Three, don’t pass out with your laptop on the charger. Safety first!

 

A Few KPMGers Give Their Unqualified Opinion on Baby Poop

Yes, baby poop.

Apparently a few Kylnveldians recently got together to celebrate the upcoming birth of capital market servant spawn. Instead of the usual “pin-the-tail-on-the-obstetrician” and “figure out what kind of candy bar this is melted in the diaper” games most baby shower goers might be familiar with, the crew decided to get creative and make some onesies.

“I thought the KPMG outfit has so many underlying messages,” says the tipster, “For example: how creative we are when are spirits are not smashed, how many times our audits are as bad a verifying that poop is poop, etc. At least its cute!”

We call child abuse.

PwC Didn’t Do CME Group Any Favors

The CFTC’s action against PwC probably came as a result of a shocking CME Group announcement late Wednesday: “It now appears that the firm [MF Global] made … transfers of customer segregated funds in a manner that may have been designed to avoid detection.” These transfers, CME Group said, appeared to have taken place after its audit team showed up last week at MF Global to take a look and found everything to be in order. CME Group couldn’t have been hoodwinked like that if PwC had been doing its job all along. You can’t circumvent controls unless there are none or there are holes. It was PwC’s job to review controls and the adequacy of policies and procedures to support them. [Francine McKenna/AB, Earlier]

So Olympus Didn’t Tell Investors That They Fired KPMG After a Dispute Over an Accounting Matter, So What?

Once in awhile, management and their auditors don’t see eye to eye on things. If semi-well adjusted adults are involved, usually cooler heads prevail and differences are sorted out. On the other hand, if there are egomaniacs or individuals of Irish descent involved, then things can sometimes go badly. Not badly in the physical sense, mind you. Badly in the sense that auditors usually get fired. When that happens it usually raises eyebrows of investors and people start asking all sorts of questions. Luckily, footnote disclosures usually detail the dispute and everyone moves on. That’s precisely what didn’t happen at Olympus:

In May 2009, Tsuyoshi Kikukawa, the then president of the camera-maker and medical equipment firm, announced that the contract for its then auditor, KPMG, had ended and that another global accounting firm, Ernst & Young, would take over. Kikukawa made no mention of any row with KPMG, although Japanese disclosure rules require companies to notify investors of “any matters concerning the opinions” of an outgoing auditor. In a confidential internal document, Kikukawa wrote to executives in the United States and Europe, revealing that there had been a disagreement with KPMG which he did not plan to disclose to the stock market. “The release to be published today says that the reason of this termination is due simply to expiry of accounting auditors’ terms of office,” Kikukawa said in the letter dated May 25, 2009, which was written in English.

You may have recently heard that Olympus is in a bit of situation. They up and fired their new CEO after he was on the job for two weeks because he was asking a few too many questions. You see, Michael Woodford was of the opinion that the $687 million advisory fee the company was paying for to a firm assisting them with a purchase the company in the UK was a tad steep and wouldn’t keep [yapping motion with hands]. Mr. Kikukawa – who has a reputation as an ‘emperor‘ – didn’t care for that, so he and the Board of Directors told Woodford that his services were no longer needed, chalking it up to Woodford being a little too British.

Fast-forward to today’s news – The accounting issue in question – goodwill impairment – was related to the company, Gyrus Group Plc., Olympus purchased back in 2009. And who do you suppose gave Reuters the memo outlining the whole we’re-firing-KPMG-because-they-disagree-with-us-and-we’re-not-telling-anyone-about-it thing?

The confidential letter was given to Reuters by former Olympus CEO Michael Woodford who was ousted after just two weeks in the job on October 14 for what he says was his persistent questioning over the Gyrus advisory fee and other odd-looking acquisitions. Woodford says the letter was addressed to him in his role as head of Olympus Europe at the time and to Mark Gumz, then head of Olympus Corp America.

Apparently this is no big whoop as long as it’s not material and “the numbers add up” says an accounting professor who has ties to Olympus. Oh! In that case, I guess everyone should just move along.

Exclusive: Olympus removed auditor after accounting [Reuters]

Bloomberg: PwC to Receive CFTC Subpoena UPDATE – Yeah, They Got It Yesterday

Don’t an expect an apology from PwC, like some firms.


PwC declined to comment.

UPDATE: Can you believe that they didn’t bother to call us? BBW reports:

The Commodity Futures Trading Commission sent the subpoena seeking information about $633 million missing from customer accounts, said the person, who spoke on condition of anonymity because the matter isn’t public. The subpoena was received yesterday, the person said.

[@BloombergTV, Earlier]

KPMG Is Sorry for Not Sorting Through This Giant Charlie Foxtrot (aka MF Global) a Little Faster

Initially the House of Klynveld wasn’t worried about any MF Global clients getting their money back. Then yesterday we learned that plenty of people were pretty cranky, including one trader who thought the firm’s efforts so far were hilarious. Now, after a number of cranky phone calls and thousands of sternly-worded emails, KPMG is apologi[z]ing for all the “disruption” since they’ve been appointed as the administrator of MF Global:

“We are working with the companies’ staff to transfer client positions wherever possible. Where exchanges and counterparties have defaulted the company under their own rules, we have worked closely with them to try to optimise the outcome,” said Richard Fleming, UK head of restructuring at KPMG. “We understand the frustration among clients and market participants at the disruption that is currently being experienced and are sorry for the inconvenience this is causing. In relation to client assets and monies held by the company we are actively working to reconcile holdings and accounts in order to enable assets to be released as soon as possible.”

So, c’mon guys; I know it’s been over 72 hours but please bear with them.

KPMG apologises over MF Global disruption [FT]

PwC’s MF Global Audit Team Really Could Have Used This Artificial Intelligence a Few Days Ago

Or maybe months ago. Or years ago. Unfortunately this news just came out today:

Free iPhone 4S at PwC! Well, for some people anyway – Email went out this morning that if your current contract is up for renewal, you can switch your service to AT&T (keeping your existing #) and receive a FREE iPhone 4S 16GB. Only question remains is what will Siri’s bill rate be?

Obviously the opportunity here is to delegate some of the more important intern duties to Siri such as where the team will get takeout, advice on how to fix the copier, among others.

KPMG Has Traders in Stitches

One anonymous independent trading client of MF Global said “It’s a joke. I don’t know what’s happening to my positions and when I’ve tried to contact KPMG all I’ve been told is that I can send an email to which I get an automated reply.” [FN, Earlier]