To audit, or not to audit, that is the question

As soon as we passed the Board, most of us dive into the profession by starting out in public accounting firms. Most of us have this belief that it’s a good training ground for new CPAs.  But all of us at that time doesn’t really have a glimpse to the bigger picture of the public accounting profession. 

Based on my few years of experience in public accounting profession, here are my observations and insights on what public accounting is and is not.

1.Starting out in public practiceis more on investment. I guess this is the major disadvantage of starting out as public practitioner. The monetary rewards are not so high as compared to those in private accounting. You will experience living payday-by-payday on your initial years. But that’s OK. The returns will be huge as years go by. When you become a partner, you will receive multi-million profit share (depending on what kind of partner are you) plus plus other perks. Yun eh kung tatagal ka hanggang maka 10 – 15 years ka hehe.

2.Exposure to different industries and companies. You will be assigned to different client companies and industries and will have the chance of knowing the ins and outs of that industry. You will also be exposed to deep secrets and confidential issues that are not known by the public or even the employees of the companies themselves. More importantly, the lessons learned in school and during review will come into reality. 

3.Public practice is not for the faint-hearted. One must be bold and courageous enough to face the everyday struggle. Good health is a must. You know... the daily hustle and bustle of fieldwork, out-of-town orout-of-the-country fieldworks, meeting client demands which may sometimes looks like impossible, ability to finish the audit work papers on time for the boss’ review and partners sign-off, and of course, working until midnight/overnight without extra pay hahaha (this is true especially kung maliit lang ang audit fee ng client mo).

4.Deep bonding with your batchmates. This is one of the best part. Your batchmates will be your confidante, friends and companion as you surf the tides of audit. The load becomes lighter when you work and play together. Your relationship with them will be treasured even the years go by. You know, the accountancy profession is just a small world. Some of them will be CFOs, CEOs, Presidents of various companies, Partners, consultants etc. Sabi nga ng batch ko noon, “Kita-kits nalang sa finals”. So, start building relationships as early as your Day 1.

5.A High IQ is not so useful. A High EQ is. I’ve seen many CPA Board topnotchers, magna cum laudes, and summa cum laudes that did not last long in the profession (some quit so early andsome were counselled out). They may have high IQs and robust technical competence in accounting, audit and taxation but in the actual practice, your knowledge and skills is of only secondary importance. A good attitude,fortitude, leadership and ability to build relationships with your co-workers and clients are more important than having memorized all PFRS and PSA. Let go of your past laurels. Pantay-pantay na lang tayo pagtapak natin sa propesyon. 

6.Do not expect that you will learn everything you need to be a CFO or CEO someday in an audit firm. I think this is the common misconception – public practice will only give you the best knowledge and tools in accounting, audit and taxation but not necessarily on the operations and management side of the business. So I will say that the belief na “tataas ang value kapag nag-start sa audit” is relative. It depends on what position or industry you will jump into after you’re done with your public practice career. So choose wisely.

7.You’ll work on extremes. Kapag busy, super busy talaga lalo na kapag busy season. Pero kapag di busy season,as in wala kang gagawin kundi mag-mall o manood ng sine habang naka time-in ka,mag internet maghapon, at kung anu-ano pa. Well based on my experience, mas busy talaga sa private kasi every month-end busy compared sa audit na ilang months lang tapos lamyerda na ulit J

8.In the long-run, staying in public practice generally has higher return up to retirement. Most of the time, the retired partners usually becomes the independent directors and board members of various companies because of the trust and confidence they built in the business community (just like Wash SyCip). Ika nga, bigatin talaga!


(This is a repost from my thread in a CPA forum site)