I am just about to finish a masters in accounting degree and begin a big 4 audit position in the fall. Eventually I want to transition to a regulatory/ compliance/ risk oversight role (gov or private sector). I know those in IB get an MBA and then try for PE but what would be my path? Would an MBA even make sense or would certifications be best. Others who I have asked said I probably don’t need any additional credentials assuming I get my CPA. I realize that I have not started yet and this look to the future is a bit premature, but I just want to be ablet to set myself up for an easier transisition down the road.
Also, how long would be ideal to stick with big 4 before trying to make this jump?
You probably don’t need anything beyond CPA for most of that. Stick with your Big4 job until you land a position in your more “ideal” role.
If you’re looking risk specific, then some of the risk management designations may have some value. On the compliance front, internal audit experience will probably have some value (as may some of those specific designations, like CIA). But CPA is sufficent for many I know in those roles.
Big4 advises in many of those areas so perhaps try to get into an advisory type role after a few years of slagging away at the audit salt mine.
I definitely intend on staying at this firm for a few years; the way I see it, it is pretty much the top(debatable) big4 and I can make a lot of connections and learn a good deal from hanging in there a while.
As for risk, I am looking mostly into credit risk roles(non-quant). I also thought about what possiblities there are to transfer to transaction services or valuation, but I have been told that these moves are infrequent. I am not sure if that is true or not. Would you think staying with the same firm and going for an internal transfer is the way to go or would I look outside of the firm?
Alot of hedge funds like to hire Controllers/COOs/CCOs from BIg 4 firms. Great career path. There are hundreds of them in NYC, but if you aren’t in NYC that would be tougher to land.
I would think that would certainly be a career path after a couple years auditing. CPA would be enough in my opinion. CFA would be nice but is kind of overkill (and massively time consuming), and MBA I don’t think would be worth the money or really help you that much except to network, so not worth it.
Yea, I had been thinking that the benefit of the CFA might not outweigh the time and effort especially if I have a CPA. Also, assuming I want to stay within the firm and try to transfer to another line of service, when would you think would be a good idea to make my intentions known and to whom?
I used to work for a Big 4 firm… what an incredibly toxic environment. I hope you have a better experience than I did, I lasted only a year in audit before I simply had to GTFO. You’re going to be underpaid and overworked, financial clients can be particularly nasty due to lots of derivatives and other types of messy things.
Transferring LOS is very tricky. I only knew one person do it successfully (he went from advisory to tax) because the HR groups are so territorial and segmented by LOS. Audit is generally understaffed and they don’t want to let anybody out. One of my former coworkers, he wanted to move from audit to transaction services (which was still under the assurance LOS). He had the blessing from the incoming group but HR refused to allow it, so got a new job offer externally. Only then did HR say “oh of course you can transfer”. Needless to say, he left the firm. I left because I knew I could advance my career faster being somewhere else. That and I didn’t enjoy making an effective $9 per hour and getting free dinner for 4 months per year.
My recommendation is to leave after you get your CPA and either right after you promote to senior or right after you promote to manager. Best of luck…
I appreciate the insight. I do hear a lot of mixed, although probably more so on the poor side, views of big 4 audit. Did you do an internship with the firm or in accounting prior to full time? Also, if you dont mind me asking, what general area was the city you were in for your big 4 position? Thanks.
I did an internship with a different firm, so I had an idea of what I was getting myself into, but not to the level of awfulness that I wound up in full time. I was, and still am, in Texas.
I’m an analyst an energy industry research and consulting shop. My job is probably most similar to sell side research, except without the insane hours and more of an industry wide focus.
My big 4 job was my first job out of school, so its not like I had many options. I worked on energy company audits, so I was able to transition that to my new job, even though truthfully I knew next to nothing that was applicable to my new role. It was mostly on the job learning.
Any kind of work experience is only as good or useful as what you make out of it.
My main interests lay in risk and regulatory compliance for financial institutions. Think SEC/FINRA/OCC for governement and Investment banks/Funds/Big 4 for public/private sectors. The reason I mentioned transferring to tas or valuation is because I thought it may be a relevant background to have when I decide to jump into the risk/reg field.
I may be totally wrong and/or misguided in this way of thinking, but that is why I am posting. I know that a lot of the people on here have been in similar situations to myself, so I thought it would be a good place to float my thoughts. Any input, advice, or criticsm is welcome.