Wanna Become a CA? Don’t do it in Quebec!

As many of you know, in order to get that illustrious CA/CPA designation, one must study for hours on end AFTER a hard day’s work and pass a very difficult exam. But at the very least, in Canada and the USA, one can study at one’s own leisure, studying around work. Have a few free moments on that plane ride to Houston? There’s a chance to study. However, all is not well in Quebec. I have been told that those who want to sit for the UFE (the exam Canadians must take to receive their designations) must do TWO YEARS of classes on top of their demanding jobs at accounting firms. To me, this is sheer insanity. How can one be expected to do one’s job properly if you have leave early to go to a night class and then study after said class? I have also been informed by our unlucky Quebecois comrades that because of the demands of classes, students are completely shut out from any travel opportunities. Shame on you, Quebec.

Cool Post Public Accounting Job #3…Counter Terrorism

I’m not saying that you should give up your time in an audit room to start basic training and become a commando. What I am referring to is the forensic accountants who work with intelligence agencies around the world in an effort to track and stop the flow of terrorist money. In a way, these forensic accountants are even more useful than those doing the fighting since terrorists are helpless without their Swiss bank accountants and money laundering operations. The best part of the job? The satisfaction that you would feel after seizing assets that you know would have been used to kill innocent people. That is what draws me to the job. The worst part? The pay sucks.

I Bet a Bank Robber Gets WAY More Time in Jail

It was reported today that Andy Fastow, the architect of the Enron fraud, has only received 6 years in jail for his crimes. This can of course be due to mitigating circumstances, namely Fastow’s willingness to help the government with its case against Ken Lay and Jeff Skilling. To me this, this is the height of absurdity. After having read Conspiracy of Fools by Kurt Eichenwald, one can see that it was Fastow was responsible for initiating most of Enron’s special purpose entities (SPEs are vehicles that were used by Enron to remove debt from its balance sheet). If anything, Lay and Skilling were simply incompetent and did not do enough to reign in Fastow, but Fastow COMMITTED THE CRIMES! For someone that has done so much damage, whether it was the loss of people’s jobs, money and the loss of prestige to the accounting profession, his sentence should have been much harsher.

Private Equity Firm Seeks CFO: Long walks on the beach, love of leveraged finance and IPOs

It seems that CFOs are a hot commodity among private equity firms.  PE firms take public companies private, fix them up and then take them public, typically at a massive profit.  One of the first things they bring in is a new CFO, with experience working with leverage, capital markets and of course, top notch accounting knowledge.  What’s in it for the CFO?  A huge pay package and challenging work.  Nice work if you can get it.

Check out the story at CFO Magazine.

Clarifying my Position on SOX

One of our loyal readers commented on my SOX story and got me thinking from his perspective, that of an investor. I agree with his assessment, however, as an auditor, I can tell you that some of the things that companies complain about, mainly the myriad of tests of internal controls that are now needed, are absolutely necessary. If you look at what happened to Enron, while it is true that the special purpose entities bankrupted them, it was actually their totally inadequate internal control over cash that left them in a situation where they could not pay their short term liabilities and had to declare bankruptcy. So while the cost of these protections is high, and the cost should be mitigated somewhat for the smallest cap companies (although, I would argue that these are the companies most likely to fudge the numbers), this law is quite necessary. I do agree that SOX needs to be refined, but the spirit must be kept.

Get Used to Sarbanes Oxley

Lately, there has been an increasing chorus of complaints from executives with regard to the Sarbanes Oxley Act and the stringent internal control provisions in Section 404.  Managers and politicians alike have suggested that the law unfairly saddles them with the costs of maintaining adequate controls in order to comply with the law. 

My take?  STOP WHINING!

Right now, this law is pretty much the only thing investors have standing between them and unscrupulous corporate managers who have proven time and again that they have no problem looting corporations and misstating financial statements to enrich themselves.  Now I am all for the free market, but sometimes, laws such as SOX or the Sherman Anti Trust Act are necessary to maintain a free but FAIR economy.  SOX also gives us accountants the opportunity to ensure that controls exist to protect shareholders and not benefit managers.

Don’t agree with me?  Leave your short but sweet counterarguments here.

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Cool Post Public Accounting Job…Product Controller

We all know that most people in public accounting want to get out as soon as they find a good posiiton in industry where they can make more money and work hours that are somewhat sane. However, a lot of us going into public firms simply don’t what our exit opportunities are going to be like. So, as a first in a continuing series, I’ve decided to showcase some fascinating positions that are available to those who are ready to leave public work.

The first showcase job is a product controller at a an investment bank. These are the people behind the derivative and credit products at these banks and they are in great demand, as evidenced by this article on eFinancialCareers out of the United Kingdom. According to the article, certified accountants are in high demand in the London market and are making boatloads of money. Salaries can go as high as 52 000 pounds, or about $105 000 US, with bonuses of 25% of base salary. These are salaries for people with only two to three years of public experience and, of course, who have just gotten their professional designations. The salary progression is pretty great as you go up the ladder, and one can imagine that the hours are way better than those of investment bankers.

For a description of the typical duties of a product controller, see this link to a typical job offering.

ADDED: This is an interview with the head of structured product control at the Royal Bank of Scotland, a PricewaterhouseCoopers alum who  discusses his job, the role of product control and how new accounting regs have markedly changed the industry environment.  Enjoy!

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Another Salary Survey

For your day dreaming pleasure, here is another Chartered Accountant salary survey. This one covers the downtown Toronto market, the most highly compensated one in Canada (although, the way Calgary is growing these days, I wouldn’t be surprised if their salaries are getting much higher). Six figures five years after getting your designation is pretty damn good.

Here’s the link to the survey.   http://www.lannick.com/salary_survey.php
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The Party's Over for Finance Pros

Well, it looks like the finance industry may finally be heading for one of its inevitable and quite painful downturns.  This means that those in corporate finance can expect much lower bonuses and perhaps even have to dust off their resumes, begging and pleading to get a new job to sustain their expensive lifestyles until the market comes back.  Well, for those of us in accounting, there will be little if any disruption in our lifestyles.  Business is booming and the shortage of accountants will most likely be with us for at least another 10 years.  So when the crash does hit, spare some change for your newly unemployed finance friends.  They’re gonna need it.

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How to buy an accounting practice

The latest issue of CA Magazine has a great piece on how to go about buying your own practice. Its a great exit strategy from either the boredom of industry or the long hours of public. For me, starting my own practice is my ultimate goal just because of the freedom and earning potential. I mean, who wants to work for years making money for someone else when you can do it for yourself!

Here’s the link.

http://www.camagazine.com/index.cfm/ci_id/30964/la_id/1.htm