Lecture 10 - Financial sector careers Flashcards
1
Q
What are the ‘big four’?
A
- the 4 largest global firms in the accounting industry
- they are Deloitte, PwC, Ernst & Young and KPMG
2
Q
What are the 5 different services that can be provided by the big 4?
A
- assurance/ audit
- fraud investigation/ forensic accounting
- advisory/ consulting services
- tax-related services
- transactions/ deals
3
Q
Assurance/ Audit?
A
- an audit is an official, independent examination of an organisations financial accounts
- this is done to make sure of the accuracy of the recording and reporting processes of an organisation
4
Q
Fraud investigation/ forensic accounting?
A
- forensic accountants/ fraud investigators help organisations detect fraud and/ or embezzlement
- data analysis skills are crucial
- can involve conducting employee interviews
- don’t need a specific ug degree
5
Q
Advisory/ consulting services?
A
- expert advice on a particular subject to an organisation in exchange for a fee
- advice includes risk management, evaluating process of efficiency for areas of redundancy and improving financial reporting processes by utilising new technology
6
Q
Tax-related services?
A
- helps organisations to understand any tax laws that apply
- one of the main area organisations are interested in the creation of tax strategies to enable them to avoid paying as much tax
7
Q
Transaction/ deals?
A
- includes assessing the financial implications of such transactions for the organisation or using all financial information to conduct valuation analyses
8
Q
What are some advantages for working for a small firm?
A
- better work life balance
- taking on whole projects rather than working on 1 smaller part of a large project = greater work diversity
- more personal visibility and connection to others
9
Q
What is auditing?
A
- involves examining the financial records of an organisation in order to understand if they are accurate
10
Q
What does the role of an auditor involve?
A
- discussions with managers about their needs and how to best report the statements for instance
- collating and evaluating evidence across sources or making recommendations for future practice
- a financial company should not provide both consulting and auditing services to the same organisation as an auditor should be able to provide impartial judgement on the practices of a firm
11
Q
Who is auditing open to?
A
- people from various subject backgrounds
- progression into the profession requires relevant chartered accountancy qualifications
- in most instances training is funded by an employer
12
Q
What do external auditors do?
A
- they evaluate an organisations financial statements, documentation and reporting process
- they are independent of an organisation
- purpose is to provide stakeholders and regulatory bodies the reasonable assurance that such records are accurate
13
Q
What do internal auditors do?
A
- review an organisations procedures, management and governance to ensure that the organisation is operating effectively and with integrity
- can promote accountability of actions and prevent fraud
- they also help with identifying issues and making recommendations for practice helping the organisation become more efficient
14
Q
What does the role of a forensic accountant include?
A
- using advanced accounting analysis to try and locate anomalies in financial records
- investigative work such as conducting employee interviews to look for clues
- leasing with lawyers, writing reports and giving evidence for trial
- do not need a specific ug degree
15
Q
Work experience?
A
- is highly valuable within the financial sector
- it helps you to gain a stronger understanding of what roles entail, how accounting firms operate
- it also demonstrates to potential employers your interest in the field
- the 4 big firms have summer programmes, internships and grad programmes etc.
