What to expect as a first year audit trainee at a Big 4 Firm

Summary

Maddie, a second-year auditor at a big four firm, shares her journey from struggling student to professional, emphasizing the importance of perseverance. She discusses the realities of entering the auditing field, including initial training, the learning curve, and the demanding yet rewarding nature of the job. Maddie offers advice for new auditors, highlighting the significance of mastering Excel, asking questions, embracing challenges, and building client relationships. She also provides insights into the transition to senior roles and the diverse career opportunities that auditing can lead to.

Takeaways

• 🎓 Maddie, a second-year auditor at a big four firm, shares her journey and insights into the auditing profession.
• 📚 She emphasizes that academic performance does not dictate professional success, encouraging students not to be disheartened by low marks.
• 🏢 Maddie describes the initial training at a big four firm, focusing on learning firm-specific systems and basic auditing techniques.
• 👩‍💼 She assures that it's normal to feel overwhelmed as a newcomer, and the first year is about learning with minimal expectations.
• 🛠️ Excel proficiency is crucial for auditors, and Maddie advises starting to learn basic shortcuts and functions early on.
• 📈 Being placed on the first client can be daunting, but Maddie highlights the importance of having a supportive team and the learning opportunities it brings.
• 📊 During the busy season, auditors can expect to work hard with tight deadlines, but it's also a time of rapid learning and growth.
• 🤝 Building relationships with clients is key, as it facilitates a smoother audit process and is a valuable skill for professional development.
• 📈 Maddie shares that after the initial busy period, the workload tends to decrease, allowing for reflection and preparation for future challenges.
• 💼 As auditors progress, they take on more responsibilities, including mentoring juniors and managing audit projects, which helps in developing leadership skills.

Q & A

What was Maddie's initial experience with her academic performance before starting her channel?

Maddie was failing all of her subjects and needed a creative way to improve her academic performance.

Why did Maddie start her channel?

Maddie started her channel as a creative way to help herself and others avoid failing academically.

What was Maddie's perception of the auditing profession before joining it?

Maddie had heard horror stories about long hours, difficult clients, and generally not enjoying the experience.

What does Maddie suggest about the correlation between academic marks and professional success?

Maddie advises that academic marks should not dictate how one will be as a professional, as they do not necessarily reflect professional success.

What is the first week at a big four firm like for a new auditor according to Maddie?

The first week at a big four firm involves mostly training, learning the systems used by the firm, and the basics of auditing.

What is the importance of learning Excel for an auditor as emphasized by Maddie?

Excel is crucial for auditors as it is their primary tool for work, and proficiency in it is essential for efficiency.

How does Maddie describe the workload during the busy season for auditors?

Maddie describes the busy season as a period of intense workload, tight deadlines, and high stress levels due to the need to complete audits swiftly.

What advice does Maddie give to first-year auditors regarding their learning process?

Maddie advises first-year auditors to embrace the learning process, ask questions, and not be too hard on themselves as they are expected to learn quickly.

Why is it important for auditors to build a relationship with their clients, according to Maddie?

Building a relationship with clients can make the audit process more efficient and pleasant, as clients are more likely to provide information quickly and cooperate.

What does Maddie suggest about the value of challenges in an auditor's career?

Maddie suggests that challenges are valuable as they force auditors to learn and adapt quickly, leading to personal and professional growth.

What is Maddie's perspective on the career opportunities for a qualified auditor?

Maddie believes that being a qualified auditor opens up numerous career opportunities due to the diverse business expertise and problem-solving skills auditors acquire.

Outlines

00:00

🎓 Starting an Auditing Career Journey

Maddie, a second-year auditor at a big four firm, reflects on her initial struggles during her honors year and how she started her channel to help herself and others avoid academic failure. She emphasizes that academic performance does not dictate professional success, and encourages students not to let grades define their future. Maddie shares her initial apprehensions about entering the auditing profession, which were filled with horror stories of overtime and difficult clients. However, her personal experience has been quite different, and she aims to provide a realistic view of what being an auditor is like. She plans to discuss the initial entry into the audit world, especially at a big four firm, the experience of being a first-year auditor, and what to expect beyond the first year.

05:00

📈 The Reality of Entering the Audit World

Maddie describes the transition into the auditing profession, starting with the first week at a big four firm which is primarily focused on training. New auditors learn the firm's systems and the basics of auditing to prepare for their first client. She assures that it's normal to feel overwhelmed and not understand everything at first. The importance of learning Excel is highlighted, as it is a fundamental tool for auditors. Maddie then discusses being placed on the first client, which can be daunting, but she assures that the team is usually welcoming. She advises new auditors to be prepared to learn, not to stress about not knowing everything, and to take advantage of the learning opportunities. She also touches on the busy season, which is a period of intense work and stress, but also a time of rapid learning and growth. Maddie shares her experience of adjusting to the auditing rhythm and workload, and how it becomes more manageable over time.

10:01

💼 Navigating the Auditing Profession

In this paragraph, Maddie provides advice for first-year auditors, emphasizing the importance of asking questions, reviewing notes, and mastering Excel. She discusses the learning curve and the types of tasks first-year auditors can expect, such as working on basic workbooks like cash and bank. Maddie explains the process of auditing, including testing valuation, existence, and other audit assertions, as well as the concept of materiality and how it relates to identifying misstatements. She encourages first-year auditors to embrace challenges, communicate with clients, and build relationships that can facilitate a smoother audit process. Maddie also highlights the importance of making friends and networking within the firm, which can enhance the overall work experience. Lastly, she provides insights into the responsibilities and expectations as auditors progress in their careers, from first-year learning to second-year mentoring and eventually to supervisory roles.

Keywords

💡Auditor

An auditor is a professional who examines and verifies an organization's financial records to ensure accuracy and compliance with regulations. In the context of the video, Maddie is a second-year auditor at a big four firm, which signifies that she is in the midst of her professional development in auditing. Her experiences and insights provide a window into the practical aspects of auditing, including the challenges and learning curves faced by new auditors.

💡Big Four

The term 'Big Four' refers to the four largest professional services networks in the world, which provide audit, assurance, tax, consulting, financial advisory, and other services. These firms are Deloitte, PwC, EY, and KPMG. Maddie's mention of being a second-year auditor at a 'big four firm' highlights the prestige and high standards associated with these organizations, as well as the rigorous training and expectations placed on their employees.

💡Auditing

Auditing is the process of systematically examining and evaluating a company's financial statements to ensure they are accurate and comply with legal and regulatory requirements. In the video, Maddie discusses her transition into the auditing profession, emphasizing the initial challenges and the steep learning curve, particularly during the 'busy season' when audits for listed companies are conducted.

💡Excel

Excel is a widely used spreadsheet software program developed by Microsoft. In the context of auditing, as Maddie mentions, Excel is a critical tool for auditors to analyze financial data, create reports, and perform various calculations. The proficiency in Excel is essential for auditors, as it directly impacts their ability to perform tasks efficiently and accurately.

💡Busy Season

The 'busy season' in auditing refers to the period when auditors face the highest workload, typically due to year-end financial statement audits. Maddie describes this time as particularly challenging for new auditors who must quickly learn and adapt to the demands of the job, often working long hours to meet tight deadlines.

💡Materiality

Materiality in auditing is a concept that refers to the significance of an item or discrepancy in financial records. An item is considered material if its omission or misstatement could influence the decisions of users of the financial statements. Maddie touches on the concept, explaining that while first-year auditors are not expected to calculate materiality, they must understand its implications in the auditing process.

💡Workbook

In the context of auditing, a workbook refers to a collection of Excel documents or a set of audit procedures that test the various risks associated with a particular section of a company's financial statements. Maddie uses the term to describe the tasks assigned to first-year auditors, emphasizing the importance of learning how to set up and use workbooks effectively.

💡Review Notes

Review notes are comments or feedback provided by a supervisor or manager to an auditor regarding their work. Maddie discusses the importance of embracing review notes as a learning opportunity, even though they can sometimes feel critical. These notes help auditors improve their work and understand where they may have made mistakes or need to improve.

💡Chain of Command

The chain of command in an organization refers to the hierarchical structure through which authority and communication flow. Maddie mentions the importance of adhering to the chain of command in the auditing profession, suggesting that questions or concerns should be addressed to one's immediate supervisor or manager, rather than bypassing levels of authority.

💡Client

In the context of auditing, a client refers to the company or organization whose financial records are being audited. Maddie emphasizes the importance of building relationships with clients, as effective communication and trust can lead to a smoother audit process. She also highlights the value of learning from clients, who often have extensive knowledge and experience in their financial systems.

Highlights

Maddie shares her journey from struggling in her honors year to becoming a second-year auditor at a big four firm.

She emphasizes that academic marks do not dictate professional success, encouraging students not to be disheartened by poor grades.

Maddie provides an overview of the initial training process for new auditors at big four firms, focusing on IT systems and basic auditing knowledge.

She discusses the importance of not being too hard on oneself during the first week, as the focus is on learning and not on immediate expertise.

Excel proficiency is highlighted as crucial for auditors, with recommendations to start learning basic shortcuts and functions early on.

Maddie describes the experience of being placed on the first client and the supportiveness of the team despite the initial feeling of being overwhelmed.

She explains the concept of the audit 'busy season' and the increased workload and stress that comes with it, especially for new auditors.

Maddie shares her experience of learning quickly and adapting to the audit environment during the intense busy season.

The value of asking questions and seeking help is underscored, as is the importance of reviewing notes to improve as an auditor.

She talks about the transition from first to second year, where expectations increase and auditors are expected to take on more responsibility.

Maddie discusses the importance of building relationships with clients and the benefits of having a good rapport for a smoother audit process.

She encourages auditors to embrace challenges as opportunities for growth and learning, rather than viewing them as obstacles.

Maddie provides insights into the role of a second-year auditor, including the expectation to assist first-year auditors and manage workload.

She outlines the responsibilities of a third-year auditor, such as overseeing the audit team, managing budgets, and ensuring goals are met.

Maddie concludes by reflecting on the broad skillset auditors gain, making them attractive candidates for various business roles.

Transcripts

hey guys for those of you who don't know

me or are new I'm Maddie and I'm a

second year auditor at a big four firm

today I was just thinking about when I

started this channel in my honors year I

was literally failing all of my subjects

and I just needed a creative way to not

fail anymore and hopefully help other

people not fail and at the time I was

definitely in a position where I was

thinking this isn't going to happen for

me because I don't know it all just

seems so difficult and if I'm finding it

difficult now my honest yeah how am I

going to find it in the Working World

and it's funny looking back at it now

being a second year and only having a

year or so to go before I qualify as a

casa that that all seems so silly and

it's absolutely achievable and so before

I start this video I just want to let

all of you know for those of you doing

your honors or university don't let the

marks dictate how you will be as a

professional because it doesn't mean

anything you will absolutely make it but

I'm getting sidetracked in today's video

I really wanted to talk about what

entering into the auditorials actually

looks like for me when I was in

University I had no idea I just heard

basically horror stories about overtime

and working on Hector clients and just

people not enjoying the experience at

all and going into auditing actually

I've had a very different experience and

so hopefully after this video you will

gauge an actual understanding of what

being an audit really does look like so

I'm going to firstly be discussing what

entering into the audit world looks like

especially at a big four firm because

that's how I see my experience and then

secondly what being a first year is like

and thirdly what you can expect after

first year yeah

foreign

entering into the ordered World setting

the scene you're a freshly graduated

pgda student or CTA honors student now

you're expected to go to work the very

next day which seems insane but you're

just gonna have to do it and then your

first week at the big four firm will be

mostly training you're going to learn

the systems that this particular firm

uses and you'll learn about the it

systems and just the basics of auditing

so that when you get to your first

client you're not completely clueless

but you definitely will be and that's

not a problem seriously don't be hard on

yourself in this first week when you

just don't understand the methodologies

at all or how to audit or how to use

Excel that's a given in your first year

you are expected to learn and that's it

there's very little expectations set on

you and that's a great thing trust me

the only thing that you should take away

from that first week is how to submit a

timesheet which you will come to become

very very familiar with in your working

life although I must stress if there is

one thing to also pay attention to

besides the timesheet thing it is Excel

um this is something you're going to

become very familiar with it is your

bread and butter as an auditor but don't

stress now if you're not an Excel Pro it

will come although I can make the

recommendation start on Excel early and

it doesn't mean that you need to know

how to code in VBA it just means

learning basic shortcuts pivot tables

fever cups that sort of thing just the

basics to get you to grips with what

you'll be doing for I guess the next

three years of your life now after that

week of training you're going to be

placed on your first client this is

daunting as hell for anybody but don't

stress about it your team is probably

very lovely and very happy to have you

once you find out who your team is your

third year so your supervisor will

probably reach out to you at this point

and say hey bro you'll be on XYZ ordered

and this is what you need to know before

starting we'll be working at the client

or we'll be working mostly from home or

we'll be working at the office and they

basically just set the scene for what

you can expect you'll never be expected

to know everything you're probably not

even expected to reach out to your

supervisor or manager they should be the

ones approaching you about the client

but if they don't never be shy to just

pop them a message but make sure that

it's either to your supervisor or your

senior and as a last resort your manager

but never never your partner um the one

thing I can tell you about the audit

world is that it's very big on the chain

of command so when in doubt always go

one level above you rather than skip I

don't know to the top of the staircase

or whatever on your first day of the

order be very prepared to learn it's

basically assumed and this I mean in a

very nice way that you're useless and

yeah you're basically incapable of doing

anything at this point that is fine just

take it all in when they teach you how

to sample when they teach you how to set

up a workbook listen and observe and

that's the best thing you can do don't

try do things by yourself when you don't

fully understand just try understand

everything take notes I I used to make a

lot of excel documents being like first

day of client and all the things I

learned and that really does help if you

can reflect back and be like okay cool I

remember that I took that away from that

day another thing to mention is that if

at this point you've been put onto a big

listed client because unfortunately most

listed clients have a year end of 31

December so that means that for the next

three months Jan to March we'll have a

very busy audit period it's literally

called the busy season and during this

time your seniors so your second year

and your third year and then obviously

your managers are extremely stressed

there's a very tight deadline to get

things to turn around obviously because

if you're listed you've got jse

requirements so the order of report does

need to be signed quite swiftly and the

order team needs to be working at full

capacity to get things done and it's

unfortunate because you've also come in

not knowing anything and now your second

year has to help you adjust and learn

and while also taking care of their

sections which are very difficult at

this point and it is just a very

stressful time I think for everyone but

it's not to say that it's going to be

unpleasant or that it has to be

unpleasant in a way this is almost the

best sort of situation because you're

going to come in and you're going to be

thrown completely in the deep end and

you're going to be expected to learn

very quickly and pick up the slack and

you can expect something expected to

work very very hard definitely harder

than you've ever worked before and

that's a great thing on your first

client because then you're going to

become so used to that sort of Rhythm

and that sort of hard work that any

other client going forward actually

seems like a piece of kick what you do

find is that after that busy season

generally your year will start to low

and that's what I've experienced now and

that's why I've taken such a big break

from these videos is I have a big client

in Jan to March and then they're

afterwards things do kind of trickle

away and then pick up again at the end

of the year and that's lovely I really

enjoy the hustle and bustle and I like

that there is a space in between where

you can kind of gather your thoughts and

and Tech stock and then get ready again

to have another hectic busy season and I

think that is what they say about

auditing is that you know you will work

really hard you will work overtime for

sure you will absolutely but when you

have an awesome team in this fun

environment where everyone is working

together and yes maybe you're doing I

don't know four hours in the evening

it's fun when you're doing it together

and going through it I must say it has

made my ordered experience really really

cool although the entire order can be

stressful as hell if your order team is

cute and you make good relationships

with everyone there's no reason for it

to be a hellish busy season at all now

the rest of your years so beyond this is

season and entering into your first

client you're going to be expected as I

say to learn and to learn very quickly

there is a massive learning curve to

start off you're going to be assigned to

very basic workbooks so cash and bank

and operating expenses are the usual

ones given to First Years and when I say

workbooks workbooks are Excel documents

containing all the tabs in an Excel doc

needed to test all the risks involved in

a particular section so for cash and

bank this is very theoretical but you're

going to be testing the valuation how

much are your your cash assets valued at

your test occurrence do they actually

exist and basically all those audit

assertions that you learn in your

governance or your auditing subject

those come into play and then in these

workbooks basically what you're doing is

testing that those assertions are

covered and that way you have

differences in the amounts is so say for

example in cash and bank one of the

procedures that you have to do is an

external Bank confirmation so the entity

is giving you what they say their bank

is valued at and you reach out to the

bank directly and you get a statement

from them and you compare these two and

if there's a difference they then you

have to compare it against what

materiality is and materiality is

calculated the exact same way as you

would have learned in order to being a

percentage of Revenue or gross profit or

whatever the case might be for this

particular entity and if it's greater

than what we call in sad or basically a

misstatement then we have an issue and

it needs to be raised with your manager

or ultimately your clients so that we

can gain the proper supporting

documentation as to why there is this

difference but you don't need to stress

about materiality as a first year this

is never something that you'd have to

calculate and if you do you will have an

extreme support system to make sure that

that figure that you're dealing with is

completely accurate and it will be

reviewed 100 million times what you'll

hopefully find after doing a few sets of

workbooks in your clients whether you're

on one client the whole year that does

happen or you're on multiple clients is

that you get confident with whatever

workbook you've thrown at so whether it

be cash and Bank Opex Revenue whatever

the case might be you're like awesome I

know the basic principles of how to set

up a workbook I understand the risks

involved with these accounts because it

is documented on file which is just

where all of your either prior year or

current year documents are surrounding

the entity exists you'll know exactly

how to audit it but the best thing about

being a first year is that no one is

expecting you to be the best they're

expecting you to learn and if you have

that mindset going forward and you're

not so hard on yourself you'll be

absolutely A-Okay and the most valuable

thing I can leave you with is to ask

questions where you need help because my

role as a second year is to assess my

first years so that they can become

exceptional second years so to summarize

as you continue into your first year

here are some of my projects one ask as

many questions as possible now is your

time to learn don't take it for granted

because coming into second year let me

tell you you are expected to take a much

more senior role and you're expected to

know things so ask those questions and

year one two review notes will not kill

you review notes are little notes that

your manager or your supervisor whoever

is reviewing your workbook is going to

leave you saying hey Maddie you did not

do this properly please and it always

feels like an affront like you know I'm

not good enough oh my gosh I completely

messed up this workbook I promise you it

never is I think they there's no way of

making a review note sound very nice

unless you add smiley faces and

unfortunately no one does so it's just

one of those things that you're going to

have to deal with and I think it makes

you much stronger and more resilient

when people are critiquing your work and

it'll always make you a better auditor

but if you don't understand why your

manager raised a certain review note

then you can always go chat to them and

resolve it point three Excel is your

best friend you work on Excel eight

hours minimum a day and you need to know

shortcuts you need to know how to use

vlookups you need to know how to use

conditional formatting you must be able

to deal with Excel well to make your job

go smooth best believe this is a skill

that you want to hone number four don't

be afraid of a challenge at the end of

last year I was put on a massive client

it was our first time dealing with this

client and it was a massive challenge I

didn't know my team and the actual

systems itself very complex there was so

much to learn but it ended up being the

most valuable experience for me because

I was forced into this environment where

I had to learn so much and pick up on

new skills like talking to the client

because if you don't understand

something ultimately that is where you

go to hey dude how did this systems work

please lead me through this process this

is something you'll become very familiar

with in system descriptions and

walkthroughs but ultimately you're going

to be chatting to your client which

seems so scary as a first year but it

becomes such an important skill to have

as you enter into the professional world

so on this client although it was

extremely hectic the lessons I learned

from it have been so valuable that going

forward into other clients I really have

just so awesome and confident and

I can just talk to anyone and I could

just do any workbook and it's been very

very cool so I recommend taking on as

many challenges as you can so that you

don't actually want a very easy audit

you need some challenges to weather you

so that you have something to show at

the end of Articles being like hey I've

been confronted with challenges and

difficulties and this is how I've dealt

with it and then leading on from point

four is point five talk to the client

this is actually quite a cool thing we

are basically children and we are able

to speak to the financial managers the

CFOs these big dogs are very big Vines

and that's so cool because they do have

a lot of experience and you're able to

have this back and forth conversation

and be like no you're wrong I know

you're right or I think the most

important thing to learn here is that no

one likes Auditors unfortunately you are

going in critiquing their financial

systems and something that they would

have way more experience than you do

being a 12 year old and it's such a fun

experience when you've actually won the

trust of a client or when the client

actually enjoys working with you so it

is really good to build a relationship

with the client and this is something

that you will hone over the years

obviously you can't be buddy buddy with

them that's really not the point of an

auditor you need to become more than an

email signature to them so that when

they are dealing with you they provide

you with information much faster so it's

just a more pleasant and efficient audit

and number six make friends if you're

not making friends then you're not going

to enjoy your ordered career my year has

been so much better because I took the

time to I don't know be part of firm

events and see my work friends on the

weekend and it's just so fun if I go

into the office I know on a given day

I'll see someone I know and it's awesome

and then lastly going forward I'm in my

second year now so what that means is as

an ordered senior you are expected to

basically start transitioning into the

third year supervisor role because your

supervisors have completed their ABC

which is the second board exam they're

ready to basically just get the hell out

of there or they'll stay on but their

mindset is definitely towards just

finishing that year and qualifying so as

the second year you are dealing with a

lot on your plate you have your board

exam which you have to study for

throughout the entire year then you're

on you know busy season you're working

overtime you're on very difficult

workbooks and then also you've got to be

now assisting your first year which is a

challenge because sometimes you don't I

mean I don't know the answers all the

time but you have to be there for your

first year and making sure that they're

always on track with their work because

ultimately you are responsible for them

and then as a third year I don't have

experience there yet but basically you

will be in charge of the order to like a

mini manager and you'll be overseeing

that everyone is on track you're going

to be doing a lot of admin until of

project management making sure that you

have this budget for the client and that

everyone is meeting their goals in terms

of the hours spent in each workbook and

that if there are any issues you are

reporting directly to your manager a

really good supervisor will have

everything under check they'll have very

good chain of command with all of their

peers so the third year to the second

year signature to the first year and a

very good idea of what's going on in the

order they were not just going to be

flailing around and then thereafter guys

I think the beautiful thing about now

being a CA is that you really are an

all-rounded sort of individual where you

have experience dealing with difficult

people you have experience dealing with

difficult subject matters so as a hire

you are very attractive because you are

just more equipped to deal with business

problems so it is a very cool career in

that sense that you have a career you

have so many options whether it's

staying audit or transferred to tax or

if you want to be a Financial Manager do

the actual books yourself or whatever it

is you have this sort of business

expertise that not a lot of careers can

offer you so that's my two cents if you

do have any questions about what order

things like I'm really so stoked to

answer any questions

um always but otherwise if you guys are

writing exams now I think it's exam time

I'm very out of the loop these days then

good luck you'll slay them yeah but

otherwise I'll see you guys soon

foreign