“When Lawrence Summers spoke from his U.S. Treasury Pulpit, he preached that no innovation was more important to the success of the U.S. capital markets than “Generally Accepted Accounting principles” Conclusion: The U.S. economy relies heavily on credible accounting information. (Wall Street Journal, February 2, 2002)
“The U.S. continues to have one of the world’s most rigorous accounting systems, and most companies clearly function within the rules … But just as investors ultimately turned away from overhyped tech stocks during the Internet bust, in the wake of Enron those same investors clearly have no stomach for any hint of accounting irregularities … fears of a new mini-Enron spur share sell-offs at the slightest whiff of accounting problems.” Conclusion: Corporations who care about their stock values have strong incentives to invest big bucks in credible accounting reports and honest and talented auditors. (Wall Street Journal, January 30, 2002)
“As the collapse of Enron has made painfully clear, the complexity of corporate accounting has grown exponentially. What were simple and objective concepts, like sales and earnings, in many cases have become complicated and subjective … This is true not just for investors, but for Wall Street analysts, corporate executives with MBAs, and sometimes even outside auditors reviewing a corporation’s books.” (Wall Street Journal, January 23, 2002) Conclusion: Students who don’t invest the time and effort needed to understand accounting statements will be placing themselves in a very vulnerable position in the real world.
Overall conclusion:A thorough understanding of accounting may be tough to attain, but it is critical for business success, and very valuable on the marketplace.
Looking for a hot career?Think number crunching! LA Times, “Go Figure: Accounting is Hot Job – Slow Economy, High Demand Add up to Big Career.”
“That’s right. Even in this rapidly slowing economy – and in part because of it – accounting and related services are very much in demand, with graduates getting multiple job offers and accounting firms competing with technology and entertainment companies for the brightest ‘bean counters.’”
And accounting is no longer confined to just calculators and spreadsheets. The profession requires regular interaction with top-level management. “I’ve worked on traditional audits, business plans, and an initial public offering, for a company,” said a 23-year old senior accountant at KPMG in Orange County. ”I’ve had a chance to work with high-tech companies, the entertainment industry, financial service clients, traditional manufacturing, health care … and I’m getting to work with senior management at those companies.”
Jacques Rioux, Professor at Drake University: “If we could produce 40 accounting graduates, businesses would hire 40. If we could produce 100, they’d hire 100.”Betty Chavis, Chair of Accounting Department at Cal State Fullerton, “Our top students are getting three to five job offers … and the demand for students seems to be getting stronger.”And these quotes come from a time when the U.S. economy is slow.
Who are the major employers? • Professional Services • Industry • Government
Top Five Professional Service Firms... Andersen, LLP Deloitte & Touche, LLP Ernst & Young KPMG PriceWaterhouseCoopers, LLP
Other Professional Service Firms... Accenture American Express Bear, Sterns & Co., Inc. BKD LLP Cap Gemini Clifton Gunderson LLC Crowe, Chizek & Company Grant Thornton Katz, Sapper & Miller V4 Consulting
How does Indiana University’s Accounting program prepare you for these careers?
World Class Curriculum • World Class Facilities • World Class Faculty
World Class Curriculum Public Accounting Reportranked our Accounting Program... 1. University of Texas 2. University of Illinois 3. Brigham Young University 4. University of Southern California 5. University of Florida 6. University of Notre Dame 7. University of Michigan 9. Arizona State University 10. University of Pennsylvania 8. Indiana University* * The only program in the U .S. that offers an MBA in accounting
IU Accounting Programs Freshman Sophomore Junior Year 1 Year 2 Year 3 Year 4 Year 5 MBAa Admission Other Schools Core curriculum Senior 4-year degree holders 4 ½ year option (with summer courses & 2 spring internships) ISS Bachelors degree Tax track Consulting track E-Business track Assurance track Tax track Consulting track E-Business track Assurance track MPA degree MBAa degree
Faculty • Steve Baginski • Daniel Beneish • Walt Blacconiere • Joe Fisher • Jim Grandorf • David Greene • Mike Groomer
Faculty • Les Heitger • Peggy Hite • Pat Hopkins • Laureen Maines • Jerry Salamon • Geoff Sprinkle • Jim Wahlen
Do I want a career that provides limitless professional options and paths? YES NO
Am I willing to put in the effort to be the best I can be? YES NO Curriculum is challenging, interesting, and broad.
Financial Accounting Standards BoardThe mission of the Financial Accounting Standards Board is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. Am I interested in joining a highly-respected profession? YES NO
Do I want to be well compensated? YES NO Business-Undergraduate $43,000 Masters of Business in Accounting $52,000* * Does not include signing bonuses.
Do I want a career that provides limitless professional options and paths? Yes NO Partner in professional service firm (assurance, tax, business advisory), chief financial officer, controller, professional consultant, investment analyst, etc...
Summary Most sophomore undergraduate students are not exactly sure what career choice is best for them. So what should you do? (1) Keep your options open, and (2) Challenge yourself with a rigorous curriculum that adds value
Panel Members... - Keith Puckett Holly Klaasen - - Adam Rooks Linda Tansel -
Panel Members... Marcy Simpson - • Brian Newton Lindsey Ross - - Bobby Samuel
Panel Members... Holly Klaasen– BKD, LLP Keith Puckett – Bear, Sterns & Co., Inc. Adam Rooks – Cummings, Inc. Linda Tansel – Deloitte & Touche Marcy Simpson – Indiana University Brian Newton – KPMG, LLP Lindsey Ross – Rolls Royce Bobby Samuel – V4 Consulting