Public Accounting and the Indiana University Student

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

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

6. Public vs. Private Accounting • 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 • 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

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