1. Public Accounting and the Indiana University Student
September 25, 2003
Indiana University
BKD, LLP

2. Overview I. Public vs. Private Accounting
II. Regional vs. Big Four Accounting Firms
What Recruiters Look For In College Recruiting Candidates
Typical First Year Responsibilities

3. 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

4. Public vs. Private Accounting
Public Accounting
Assurance
Tax
Consulting
Ease of moving from public accounting to private accounting
Occupational mobility
Variety in:
Type of work
People you interact with
External
Internal
Much easier and more common to go from public to private.
Many private business like to see the CPA title when considering the hiring process
Starting in private does not afford accountants as much mobility as those starting in public

5. Public Accounting Career Track
Partner
Staff Consultant
Staff
Senior Consultant
Senior
Supervising Consultant
Supervisor
Managing Consultant
Manager
Senior Managing Consultant
Senior Manager
Consulting
Audit & Tax

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

7. Public vs. Private Salaries (Source: Indiana CPA Society)

8. 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
Chances are 1 out of 20

9. Regional vs. Big Four Accounting Firms
Client Base:
85% large corporations (most SEC)
15% medium to small
Fewer jobs that are longer in duration
Less opportunity for exposure to wide variety of clients
Significant travel
Making Partner
Average length of time is 18 years
Chances are significantly lower
Upper level partner’s compensation (Equity and Non-Equity)

10. Public Accounting Report’s Top 10 for 2003
U.S.
Net Revenue
Number
Revenue Split
Firm
(in millions)
of Partners
of Offices
A&A
Tax
MCS 1
Deloitte & Touche (New York)
5,900.0
2,618 81 36 21 34 2
PricewaterhouseCoopers (New York)
4,715.0
2,027
113 59 29 9 3
Ernst & Young (New York)
4,515.0
2,118 86 38 4
KPMG (New York)
3,170.0
1,535
122 63 37 5
RSM McGladrey (Minneapolis)
580.0
498 40 20 6
Grant Thornton (Chicago)
400.0
312 51 50 16 7
BDO Seidman (Chicago)
353.0
281 41 18 8
Crowe Group (Indianapolis)
247.3
104 24 19 57
BKD (Springfield, MO)
215.7
194 27 42 22 10
Moss Adams (Seattle)
175.0
182 33

11. What Accounting Recruiters Look For In Candidates
Communication skills
Enthusiasm
Creativity
Problem solving ability
Teamwork skills
Highly motivated
Excited about the firm

12. 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

13. Tony Gerdt tgerdt@bkd.com Sean Barr sbarr@bkd.com Thank you!
Any Questions?
Tony Gerdt
Sean Barr
Thank you!