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Priceratio
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Joined: 18 Nov 2009
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Posted: 29 Feb 2012 at 20:59 \| IP Logged

I hear from other people that you don't really learn accounting during your first year in a Big 4. Most of the work involves a lot of writing, testing, and some research. But, you don't actually do (technical) accounting work until you're at least a little more than 1 year in. Is this true for 1st year entry-level auditors?

*Some of my friends who worked in the Big 4 for a short period of time don't know how to do bank rec's, balance a balance sheet, or make appropriate journal entries. Is it because they're not good at the job or is it because of what I wrote above - you don't really learn accounting during your first year in the Big 4?

logitech
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Posted: 10 Mar 2012 at 08:48 \| IP Logged

they dont know how to make proper journal entries? how did they even get in big four..

so far i have heard..that you learn a LOT at big four...

big four is bbbbbbiiiiiiiiiiggggggggg

Priceratio
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Posted: 14 Apr 2012 at 00:18 \| IP Logged

Come on, let's be honest...when you come straight out from school going into your first job...do you really know accounting? I would say 99% of the new grads couldn't tell their foot from their a** when it came to actual/practical accounting...this includes most of the straight A students I know. The only real way to learn practical accounting (i.e. - knowing how to make proper journal entries) is by doing it at work. This is why work experience is so important.

However, I have heard that people, who worked in the Big 4 for one year or less, don't have a clue on how to make proper journal entries, make adjustments, perform bank rec's or close a set of books to balance financials. Most of their work is testing and documenting processes. They don't learn "real" accounting until a few years in. Is this true?

*I'm suspecting that there aren't many answers to my question because a lot people here have never worked in the Big 4.

cypj87
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Joined: 22 Mar 2011
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Posted: 15 Apr 2012 at 18:01 \| IP Logged

I just finished my first busy season in the big 4 as an Auditor and I can tell you that we do tend to tie out financial statements, perform bank recs, learn target testing and substantive analytics, learn how to recognize if there is an error (material or immaterial), how to follow up and document that error, and also how to communicate to the client.

The biggest thing about your first year in the big 4 or at least what I've been told is that we need to learn our firm's terminology and also get the CPA exam completed.

Also your first year you are told that you are expected to know nothing about accounting and auditing so the first busy season is for learning all the necessary tools you will need to be an effective auditor and hopefully the more experience you gain the more technical accounting you will learn.

Of course this is my own experience and also everyone's experience starting out in public accounting is different because we are all working for different teams, different personalities, different clients, and different seniors.

Hope this helped, at least a little bit.

P.S. We will also learn how to spell check your work!

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CPA@23
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Joined: 07 Jul 2010
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Posted: 25 Apr 2012 at 10:13 \| IP Logged

Priceratio wrote:

Come on, let's be honest...when you
come straight out from school going into your first
job...do you really know accounting? I would say 99% of
the new grads couldn't tell their foot from their a**
when it came to actual/practical accounting...this
includes most of the straight A students I know. The
only real way to learn practical accounting (i.e. -
knowing how to make proper journal entries) is by doing
it at work. This is why work experience is so
important.However, I have heard that people, who worked
in the Big 4 for one year or less, don't have a clue on
how to make proper journal entries, make adjustments,
perform bank rec's or close a set of books to balance
financials. Most of their work is testing and
documenting processes. They don't learn "real"
accounting until a few years in. Is this true?*I'm
suspecting that there aren't many answers to my question
because a lot people here have never worked in the Big 4.

I work for Big 4 and I will try to answer your question:

1) I agree that new graduates do not know a lot about
accounting and the best way to learn accounting is by
actually working in accounting for couple of years.

2) As an auditor in public accounting, you are not
ordinarily involved in making journal entries for
clients, although you do have to gain basic understanding
of the accounting software in your first year in order to
better analyze information prepared by client (PBC).

3) As for adjusting journal entries, you can post
adjusting journal entries if you come across a material
error when auditing financial statement. If the client
agrees and correct the error, then that adjusting entry
will not be a part of audit differences, but if the
client does not initially agree and correct the error,
then you would post that in audit differences and client
later decides whether or not they want to make that
adjusting entry.

4) One of the biggest marks of technical excellence in
accounting is the attainment of the CPA license and if
the first-year associate passes the exam, then he/she is
usually ranked at the top of his/her class.

In summary, you can learn a lot of technical accounting
in your first year at Big 4 because what you get out of
Big 4 really depends on what you put it.

__________________
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