Any Big 4 Accountants out there?

[Face]

Truth! Before we switched from E&Y, they would send their PBC lists, etc. And, at some point, they would show up in my office with the balance sheet flux questions. On more than one occasion, from different members of the audit team, I was told that they needed an explanation for the current year change in accumulated depreciation. I had to remove my face from my palm so I could laugh at them!

Can't speak for every instance, but if you would like some one to explain to you the reasoning behind some of the requests that seem stupid, you'd be surprised at the level of thought and analysis behind them.

Anyway, didn't intend for this to be a place to complain about auditors Just trying to see how much of volnation has big 4 ties :hi:

 

[Chuckie]

Can't speak for every instance, but if you would like some one to explain to you the reasoning behind some of the requests that seem stupid, you'd be surprised at the level of thought and analysis behind them.

Anyway, didn't intend for this to be a place to complain about auditors Just trying to see how much of volnation has big 4 ties :hi:

Well, I'm sure that there has to be something to it beyond the simple request. However, when the difference between accumulated depreciation this year versus last year is the amount of depreciation expense on the face of the statement of operations, there is no amount of reason, thought or analysis that would characterize the question as anything other than silly. When the reason, thought and analysis overrules acknowledgement of the simplest of accounting functions, the auditors take on the role of an if/then robot that, upon exceeding a certain dollar and/or percentage threshold, asks a question without any analytical consideration.

 

[IBlvNTmWrk]

 

[f77f00]

I used to work in a facility that provided training space for most of the large audit firms. I swear half of KPMG's business model must have been based on hiring for hotness. Those girls were just consistently fine.

D&T girls were ok, PWC girls too, Arthur Anderson was A-OK, but KPMG won the hotness war hands down every time a new bunch of classes would start.

 

[Face]

Well, I'm sure that there has to be something to it beyond the simple request. However, when the difference between accumulated depreciation this year versus last year is the amount of depreciation expense on the face of the statement of operations, there is no amount of reason, thought or analysis that would characterize the question as anything other than silly. When the reason, thought and analysis overrules acknowledgement of the simplest of accounting functions, the auditors take on the role of an if/then robot that, upon exceeding a certain dollar and/or percentage threshold, asks a question without any analytical consideration.

What if the goal is to document the driver of the change, not simply what changed?

Was it due to a change in depreciation method the assurance team was unaware of?

Does a large increase in AD signal the company has too many aged assets? If so, why are they not replacing them? Is there a going concern issue?

Does the increase result from a large capital investment for a new production line?

I realize many questions seem trivial, and some are, but are documentation requirements due to state or federal law.

Sorry for the nerd speak. But from some one on the assurance side to someone on the client side, I've never asked a question there was a lot of planning behind.

 

[TBrown]

I went to a different school with the grandson of Glocker. I still have a kid at UT and when he refers to Haslam and I always say it is Glocker dammit.

A knowledgeable auditor is always refreshing......but they always bolt public accounting too soon.

This is true. Bolted public after a shade over 4 years for a controller position. Never spent a second looking back either.

 

[CanadianVol]

This is true. Bolted public after a shade over 4 years for a controller position. Never spent a second looking back either.

I interviewed for a few positions this summer, but nothing that really piqued my interest. Plus, if I stay for one more year, I get that "coveted" manager title. We'll see. My wife thinks I'll stay until I know if Partner is a possibility....I don't know if I'll last that long.

 

[dembewbs]

I thought about being a CPA until I took accounting in college...And I was like...Uhh this isn't for me..Nor will it ever be

 

[Chuckie]

What if the goal is to document the driver of the change, not simply what changed?

Was it due to a change in depreciation method the assurance team was unaware of?

Does a large increase in AD signal the company has too many aged assets? If so, why are they not replacing them? Is there a going concern issue?

Does the increase result from a large capital investment for a new production line?

I realize many questions seem trivial, and some are, but are documentation requirements due to state or federal law.

Sorry for the nerd speak. But from some one on the assurance side to someone on the client side, I've never asked a question there was a lot of planning behind.

Hey, I get that you don't know my company and that there are an assortment of ways to justify some of the questions that are asked. I work for a healthcare system with an acute-care hospital, EMS, surgery center, multiple skilled nursing facilities, retirement community, HUD housing projects for the elderly or disabled, etc.

We had the same firm for over 10 years, so our working relationship was pretty good. We would have notified them proactively if there had been some sort of significant change in business activity. They come on-site for two rounds of preliminary work. So, they knew that we had not added a significant line of business or changed depreciation methods. They also know that there is no going concern issue with our organization and that we don't have issues with aged assets.

I'm not saying all auditors are idiots. As I mentioned, we are very happy with the firm we have now. It just seemed, like I said, that E&Y's auditing techniques had become too robotic.