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Showing posts from September, 2013

New world

I've posted a few blogs earlier on this new world that we live in. This is a world where we're auditing for the regulators (PCAOB) instead of auditing for investors. We're auditing in fear of the PCAOB or our internal reviews finding something instead of auditing using a sense of reason. This is an era of upheaval that, from my understanding, harkens back to when 404 was first implemented. There is a sea change going on at the Firms because of the new PCAOB demands. It's certainly painful for the people implementing this now, but it'll be fascinating to see if this changes. Once the dust settles on this internal control rehaul, will the PCAOB choose a new battle to fight that will cause another upheaval in the near future. The PCAOB is turning into a dangerous animal, especially since it's backed by the government and is paid for by the private sector (mandatory PCAOB fees for all issuers). With that kind of funding, and with teams dedicated to different accoun…

salary change upon transfer

Quick question - If you're given the opportunity to stay within the firm and transition cross functions in a Big 4, say from Audit to Advisory/IT Risk, do they adjust your salary to match your peers in the destination function? Would a first year audit senior transitioning to a first year advisory senior make the same as if he started at the firm as an advisory staff? 


It depends on when you leave, and it depends on the Firm. If you transfer after the Firm's decided your salary for the upcoming year, then you will have the same salary that your previous group had agreed to until the next year. Also, some Firms claim that your pay is based on your previous year's work, which was in a different group, so they'll carry over that salary, and some Firms will adjust your pay. Timing is basically key. In terms of your second question about the audit senior going to an advisory senior, yes, you will be within a close range based on the level you are at. Keep in mind that while …

hobson's choice

I've been reading through the posts and I get the feeling that many people feel that they have no control over their actions; they are driven. What if you and they knew that it is up to the individual to determine their own response to e-mails, to stress, to unrealistic demands - to whatever they encounter? You and they have a choice. What makes people so readily give up the power over their own lives? 


Deep. You are right - most people have a choice. They can choose to leave at any time to pursue other opportunities. But they stay since they know they have to put a few years in in order to get a better opportunity elsewhere.  And so they've effectively reconciled themselves to staying for a few years.

Now, in terms of determining responses to emails, stress and unrealistic demands, individuals do have a choice, but they can't control the consequences. That's where the issues rise. Let's take email responses. You have a choice to do the following:
a) Ignore the email/…

Compensation!

Been a month or so since we found out about our compensation. People asked me how I thought the raises would be, and I honestly had no idea. The higher up you go, the less you hear the gossip since many of your colleagues who started with you have left. It is really funny how open some people are about compensation sometimes. The staff always seem excited because they've never been through this process before.
 Overall, compensation this year seemed to be within expectations. I've really become numb to it at this point, it's nice to have the number increase, but that's about it. For those of you interested in numbers, head to going concern.