Category: Big 4

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

Deloitte Is Eyeing Some Germans

Namely, Roland Berger Strategy Consultants based out of Munich.

Supposedly the two will have their minds made up sometime next month but by the sounds of it, the two companies are flippin’ stoked about the possibilities:

“A merger opens up a unique opportunity for growth for both firms,” [Deloitte Germany Chief Executive] Plendl said.

Roland Berger confirmed the talks.

“Discussions with Deloitte are taking place to open new and fascinating growth prospects for our company,” Roland Berger Strategy Consultants said in an e-mailed statement today.

While that’s what is going in the foreground, Adam Jones over at the Financial Times was so bold to suggest that this just another step in Deloitte’s quest to “overtake McKinsey as the market leader in strategic advice for managers.”

Now we hadn’t heard about this McKinsey-slaying goal prior to today and it seems a little credulous to think that Deloitte is jockeying with McK, especially when you consider the domination of McKinsey in the eyes of those who work in the industry.

However, on paper Deloitte derives $7.5 billion from its consulting business which is nothing to sneeze at. Considering that and the fact that they haven’t exactly made their desire for mergers a secret, Deloitte this very well could be a step in earning another #1 notch in their belt (with matching suspenders).

Jim Quigley Would Really Like It if the Big 4 Could Audit in India

Deloitte is hiring about 3,000 people in India as part of their hiring bonanza and global CEO Jim Quigley dug into his bag of boilerplate statements to express his excitement:

“India is an extremely important market for Deloitte. As…Opportunities in the new economic environment emerge in India, Deloitte with its focus on hiring, developing, and deploying the best talent in the region, will help clients capitalise on these new market initiatives,” Deloitte Global CEO Jim Quigley told reporters here.

Right. So nothing new there. However, Quigs thinks that it’d be really swell if TPTB in India would change their mind about letting the Big 4 provide audit services there:

Quigley also made a case for India to open up its market and allow global audit firms to practice here, besides providing consulting and advisory assistance.

Allowing international accounting firms to practice here would require India to negotiate and allow the service to be accessed under the World Trade Organisation (WTO). At present, India has not opened up services like audit and law for foreign practitioners.

“I urge the Indian authorities to give a serious thought to allowing global audit firms to practice here. It is for the betterment of accounting professionals. A mutual recognition is required out of foreign direct investment,” Quigley said.

See? It’s not just about the biggest firm in the known universe getting bigger, it’s for the betterment for the entire accounting race. There’s so much fun to be had. The Satyams of the world are once in a blue moon.

The Queen Would Like to Know the Staffing Situation for KPMG’s Banking Clients

If you’re a student of Kylnveldian history – and we know that you are – the fact that KPMG has been auditing the Royal Household’s accounts since before Liz was born doesn’t surprise you. For those of us that weren’t aware of this KPMG fun fact, this is just adds a little more to the blue square mysitque.

Anyway, being the classy gal that she is, Her Majesty showed up last Friday to help mark the opening of the new KPMG building in Canary Wharf. And not only was she thrilled to be there, she surprised KPMG leadership with her affability and interest in the work that non-royals do:

John Griffith Jones said: “She genuinely seemed interested in what we do, especially our charity work and the building’s green credentials. She made a funny comment about Crossrail being delayed and also asked about our role during the crisis.”

Senior partner Eddie Donaldson said the firm was in a “unique position” independently auditing the royal accounts which use public and private money. “The team already see it as a privilege to work on the accounts in the first place and then to meet the Queen was a very special moment in their careers.”

And because she’s concerned about the serious issues out there, Jones was also quoted, “she was very interested to know how many people we had working on the banks.”

The possibility that Queen Elizabeth probably knows more about KPMG than Dick Bové should not be lost on anyone.

Future Big 4 Associate Needs Help Choosing Between Commuting Hell and a Happy Marriage

Ed. Note: DWB was sober long enough today to pen this post for the Friday edition of Accounting Career Couch. If you’ve got a question for us email us at advice@goingconcern.com. We’ll dispense with further pleasantries and get right to it.

I just received three offers from two Big 4 firms in San Francisco (Deloitte and KPMG) for audit and one Big 4 firm for advisory internal audit in San Jose. I really like the idea of going into advisory but the problem is that I live in San Francisco and the advisory clients for this firm are all located around San Jose and the Silicon Valley. This would likely mean at least a one hour and 15 minute commute every day each way from SF to SJ and back againlients I would likely be working on from SF are all located within 20 minutes of my apartment in the city. Moving to San Jose is out of the question for me because my wife works in SF and I’m not ready for a divorce just yet. My question to you and Going Concern readers is should I take the advisory job despite the crazy commute or should I take one of the audit positions?

I’d still be very happy taking one of the audit positions but I’d be lying if I didn’t say that the more consistent working hours of advisory internal audit didn’t appeal to me much more than audit (no insane busy season in advisory). Much of this benefit would be negated by my much longer commute though. Also, if I choose advisory I would be likely getting reimbursed $0 for my commute since the job is based out of the SJ office and I am based in SF. Although $0.50 a mile doesn’t sound like a lot, it really does add up to several thousand dollars in missed reimbursement expenses for such a long commute (assuming 80 miles a day in reimbursable driving). Also, the advisory position pay is slightly less to begin with (approximately $1,500 less) than my audit offers. Other considerations that I am thinking about are that many people from the Deloitte office (mostly associates) have said that the Deloitte SF office is understaffed. To me this means more opportunity for advancement but also more hours of work. Also, I feel that if I started in audit I could do two years of audit and if I didn’t like it then could jump ship to advisory in SF rather than having to start at advisory in SJ and beg to get a transfer to the SF advisory practice in a year or two. So what should I do? Should the lengthy and costly commute for advisory versus audit be a deal breaker? Will I struggle to break into advisory after two years in audit if I decide to make the switch?

Hopefully I’ve given enough info about my choices so that DWBraddock will stop complaining about us not saying enough in our requests for advice.

Kudos to you and your detailed email. Peons of the accounting world – take note [Ed. note: but there is something to be said for brevity. Yeesh.].

First off, my advice is from the “this is usually how it works” camp. Are there exceptions? Of course, and I’m sure that commenters will point them out.

Are you sure you will be reimbursed for every single mile that you travel? The HR policy is typically the net difference between your home to the office and your home to the client site. For example if you live 50 miles from the office and the client site is 53 miles from your home, you are reimbursed for the three mile difference. I strongly encourage you to consult HR before you go re-adjusting the all-in value of the advisory offer with thousands of dollars of mileage.

Now that I crushed your dream of banking $1,000’s, let’s discuss the audit vs. internal audit battle. You make a lot of assumptions in your email, but I think these bullets cover everything you discussed:

• Internal audit should not be looked at as a green-lighted pass to jump around the advisory practice. Many advisory roles are target recruited and are very specialized from a work capacity point of view. The name “advisory” doesn’t mean the roles are similar; it’s simply a nicer way of saying “everything that’s not audit and tax.”

• You will not be fast-tracked at Deloitte just because they’re short staffed. You will work your ass off.

• It’s easier to go from internal audit to external audit, not the other way around (the way you mentioned).

• Don’t think a transfer is a simple process. There has to be a need in the office you want to transfer to, and considering you’re contemplating and office and practice switch-a-roo in one swift motion…really? This is not a game – this is business and not everyone gets what they want.

• PS – I forwarded this to your wife. She said you’re sleeping on the couch for the next week.

Grant Thornton Employees in Chicago Feeling the Heat to Join Big 4

After reporting rumors that PwC was chasing Deloitte seniors in Chicago, now comes another report out of the House of Chipman:

Is it just me or is pwc trying really hard to bring in seniors in Chicago? The other day at GT, the same pwc recruiter called every S1 in audit asking if we’d be interested in moving over.

A few of us actually answered just to see what he had to say and he was pushing real hard in getting people to accept that if we made a move, we’d have to take a step down (S1 to move over to A3), and that they’d be making a large investment in keeping us long-term (at least through a promotion to manager). This is after we lost a S2 and an A2 who both moved to pwc. Plus, we’ve received several emails from other outside recruiters gauging our interest in the Big 4, not to mention my friends at the Big 4 trying to get me to send them my resume so they can refer me (for a much larger referral bonus, I’m assume). Not sure if this is juicy enough information, but that’s pretty much what’s happening right now over at G to the T.

Here’s the deal people – all the firms need people at the Senior Associate level. All the firms have made it known that they are hiring aggressively, both experienced and entry-level employees and the recruiters within the firms have jobs too. Besides, where are they supposed to look for the appropriate talent to fill their empty positions? Dunkin’ Donuts?

Grant Thornton, believe or not, has plenty of talented people and the Big 4 will take those people if they can get them. Management probably gets tired of all the bellyaching by employees about how short-staffed they are so the pressure is on the recruiters to get asses in the seats.

If you don’t want to be hassled by Big 4 recruiters, simply say, “I’m not interested, thanks,” and go on your merry way. But judging by all the complaining at GT, lots of employees are probably happy to entertain some options.

A/P Clerk Would Like to Know How to Best Use $30k to Get a Job with a Big 4 Firm

From the mailbag:

I have been working as a Accounts Payable for 3 years. I don’t want to waste your time of explaining my disadvantages. One of my advantages is money. I have a large savings. I would like to give $30,000 to anyone who get me a job in Big 4. I am not talking about [a] bribe. I wish to know how to use advantages [sic].

Just don’t sit there, give the man some suggestions. All options are on the table. Bonus points for creativity.