CPA or Big 4 (1 Viewer)

[CommandaHD]

Hello all
I'm currently a full time commerce University student major in accounting and going to undertake work integrated learning next year as part of my program. I'm very serious about my career. I was wondering if CPA companies are better off than the Big 4 or the other way around. What benefits do they bring. It would be great if someone could give me past experiences either positive or negative about the two.

 

[Vagabond]

Hello all
I'm currently a full time commerce University student major in accounting and going to undertake work integrated learning next year as part of my program. I'm very serious about my career. I was wondering if CPA companies are better off than the Big 4 or the other way around. What benefits do they bring. It would be great if someone could give me past experiences either positive or negative about the two.

Many jobs ask for CA/CPA qualified but many specify only CA qualified candidates.

Incidentally CA is a harder course.

I assume by Big4 you mean CA as the Big4 only use CA staff.

 

[seremify007]

As Vagabond said, many jobs are happy with either CA or CPA, but there are a few slightly more elite jobs which specify CA only- typically either professional services or large SEC listed companies. I'm yet to see a CPA-only job.

 

[RogueAcademic]

I was wondering about that. What can a CA do that a CPA can't do? Or is it purely an elitist thing?

 

[~shinigami~]

Also, roughly, how do the two qualification paths differ?

 

[Vagabond]

CA is a formal grad diploma in addition to a professional association. Obtaining the qualification involves verbal assessments, written exams, etc.

CPA is not technically a grad diploma. To be cpa qualified you sit multi-choice exams I think .

My understanding is both are compatible with corporate accounting jobs but some employers value the CA more - based on what i've seen on job ads. You can look these up yourself online

CPA will counter this with statistics like that more people are CPAs than CA, however i'd guess you'd expect this because the CPA is easier to obtain

I think it's this factor that means certain elite jobs will specify CA only simply to thin the candidate pool since i'd say work skills aren't correlated entirely to what you've studied

In the same way some grad positions will only hire from G8 unis, or stipulate UAI floors, etc.

 

[CommandaHD]

Thanks for the info Vegabond. About the CA and CPA course, how long does it take to finish each course and how much does each course cost.

Also, between CPA and Big 4 firms, who offer better pay or working conditions. I've heard that people going for cadetship, vacation or Co-op at Big 4 comp were made to work really hard. Can you verify whether this is true.

 

[Vagabond]

Not sure how you expect me to 'verify' whether you will subjectively find work hard but..

Also, between CPA and Big 4 firms, who offer better pay or working conditions.

Given that you still can't seem to tell the difference between professional associations and companies I'll take a stab and say yes. Its hard. You shouldn't go in this field.

 

[RogueAcademic]

Who are these CPA firms?

 

[fatbastard]

CA qualification is a professional qualifcation associated with British Commonwealth countries. Upon graduation of the CA program you will receive a Graduate Diploma in Chartered Accounting, whereas, the CPA is a series of exams for membership into the CPA Australian.

CA is the main professional accounting qualification within the Australian Big 4. In order to become an equity partner within a "chatered accounting firm" let's say Big 4, you have to complete the CA program. However, there are staff within Big 4 who complete the CPA program for their own career and personal reasons. For CPAs with 10 years experience in chartered accounting, they are eligible for membership into the ICAA.

There is no such thing as the CA is better or superior than the CPA. The ICAA and CPA Australia are 2 professional bodies with similar codes of conduct and ethical requirements. Both are recognised in the business world, however, the CPA is more industry-focused qualification. That is not to say that the CA isn't.

From an international perspective it does not matter if you get the CA or CPA. If you want to work in the US, you still require conversion exams. Even in the US, US CPAs within one state cannot practice in another. If one's intention is to work in Australia or other Commonwealth countries, then a CA is more desirable and appropriate.

It is without a doubt that the CA Program is much harder than the CPA Program. I currently work in Big 4 and the majority of the people complete the CA Program. CA Program is much more stringent and rigorous because they have 5 set subjects for candidates to complete, whereas, CPA you can choose from a variety of subjects. For the CA Program, there is only 3 marks you can get "Pass", "Merit" or "Fail". Majority of the CA candidates will be extremely happy for a "Pass". To get a Merit you have to get within the top 5% of the state, and for someone that is working full-time it is extremely difficult to find time to study enough to get within reach of top 5% of the state.

For those that intend to pursue a career in Big 4 accounting, I strongly suggest the CA program.

Just my 2 cents.

 

[raven2000]

sorry im totally ignorant about this topic - But i want to become an accountant. What exactly is the Big4? What are the advantages of becoming a big4 accountant as opposed to a *normal*accountant?

 

[Vagabond]

http://en.wikipedia.org/wiki/Big_Four_auditors is a starting point

Big 4 work on corporations. Hence working for them gives you corporate exposure. The experience is widely valued and, whilst everything in life is a pyramid scheme, the possibilities from starting within the big4 are relatively endless.

Big 4 generally tends to pay less but promote faster and maintain strong culture at work, versus working as an accountant in a corporation.

When you say you want to become an accountant you should firstly differentiate whether your clients will be households or corporations. The experience doesn't really cross-over.

 

[~shinigami~]

http://en.wikipedia.org/wiki/Big_Four_auditors is a starting point

Big 4 work on corporations. Hence working for them gives you corporate exposure. The experience is widely valued and, whilst everything in life is a pyramid scheme, the possibilities from starting within the big4 are relatively endless.

Big 4 generally tends to pay less but promote faster and maintain strong culture at work, versus working as an accountant in a corporation.

When you say you want to become an accountant you should firstly differentiate whether your clients will be households or corporations. The experience doesn't really cross-over.

Even though my chose career path isn't along these lines, I am glad that we have someone like you on the forums to explain it all.

Very interesting, even if I'm not gonna be an accountant.

 

[fatbastard]

CA firms, especially Big 4 firms have very structured training programs at every stage in your career e.g. from Accountant/Consultant, Senior Accountant/Consultant, Manager, Senior Manager/Associate Director, Executive Director to Partner, which is in line with their global practices. Also, Big 4 support you in paying for study and giving you time off to study and sit for exams, whereas, in industry you'll be hard-pressed for formal training programs and study support.

Big 4 definitely pay less than industry (at all levels, besides Partners) because they know that your experience there will give you a pay premium once you leave.

In terms of promotions, it is more structured in Big 4 and there are set time frames where you will be promoted (e.g. 2-3 years you'll get promoted to Senior Accountant), however, that isn't to say that there haven't been instances where they don't promote you. On a one-to-one comparison, you can say Big 4 have a more structured career progression, whereas, in industry the saying of "stuck in the middle" applies more often than not.

 

[CommandaHD]

I think that fatbastard just spot on and summed it all up.
It's true that I heard people rumored that CA firms paid less but a growing number of candidates still wanted to apply because they give you the valuable experiences which gives you higher advantage in finding work in other big accounting companies when you leave the Big 4.

About the Merit score for CA program mentioned by fatbastard which is 5% of the state. Does having a Merit score give you major advantage in your accounting CV.

Also, this stems another question I want to know. In the accounting industry, what do employers from Big 4 and CPA value higher when recruiting accountant:
a. Academic results or
b. Previous experiences with accounting firms or
c. Great flexibility, the ability to work long hours and highest level of committment to the job

 

[blue_chameleon]

In the accounting industry, what do employers from Big 4 and CPA value higher when recruiting accountant:
a. Academic results or
b. Previous experiences with accounting firms or
c. Great flexibility, the ability to work long hours and highest level of committment to the job

Um, all of the above.

 

[velox]

Um, all of the above.

I'd say (B) if it was an experienced level hire.

 

[~shinigami~]

I'm too too knowledgeable in this area so my question might sound really stupid but if the Big 4 is only a stepping stone to a higher paying job then doesn't that mean there are bigger companies than the big 4? I'm a big confused.

 

[Vagabond]

Size does not = pay

In the accounting industry, what do employers from Big 4 and CPA value higher when recruiting accountant:

(D) Candidates who aren't retarded enough to confuse a company with a professional body

 

[blue_chameleon]

(D) Candidates who aren't retarded enough to confuse a company with a professional body

CPA do actually have staff though. But thats not enough to help him.