Audit: Studying and Exams

Submitted by WikiJob on 16 May 2009 - 12:56pm

Thanks again to YP (long term WikiJobber and audit trainee at Big 4 firm) for supplying another great post about working life as a trainee auditor.

15

"15" – a number that you will dwell on as a trainee auditor. It’s the number of exams that need to be passed to get the ACA (Associate Chartered Accountant) qualification. After you qualify, you have the privilege of paying ICAEW (Institute of Accountants for England and Wales) membership fees to have the “ACA” title after your name. Only then will you be a “Chartered Accountant”.

Why do the exams?

Because your training contract demands it. Also, being ACA-qualified does lead to a jump in salary and better career prospects. You’ll also get the respect that you deserve/demand from being a Chartered Accountant.

The exams are important

The ACA is more than a qualification – it’s the raison d’être for becoming an auditor. If you want to audit, you need the ACA. Some join the Big 4 just to get the ACA. That’s fine too - just don’t give the impression that you will instantly quit after qualification. Either way, you need to pass the exams.

Your passing the exams is important for the firm too. They need ACA-qualified auditors. They expect you to apply what you learn in your work. They can’t afford to keep those who don’t pass the exams. To that end, you’ll only get two chances to pass an exam. Otherwise, you will get fired. No-one will remember how hard or how well you work unless you pass those exams!

Training costs for the firm are very high. There are course materials, college fees, exam fees, qualification fees and paid study leave. The greatest cost is the time that you are not in work earning money for the firm. A trainee might be studying for two/three months of the year. That’s a deadweight loss for the firm.

In particular, the Big 4 firms need to attract the best graduates to stay at the top of the market. That’s why they make this substantial and risky investment in ACA training. It also means that they will do their best to make sure you pass. No doubt the Big 4 firms will tout their exam pass rate to potential trainees.

The learning process itself

Learning is split between classroom tuition at college and private study days, both of which are paid for. The split depends on the subject, for example, the accounting exam was taught and the law exam was entirely self-study.

One advantage of the large/medium sized firm is that you’ll get classroom time to learn the material. It’s like being back at school, complete with homework and the desire to leave after an hour. College is an intense seven hours of learning. But it is a nice break from work.

Yes, people do use study leave to go skiing. But I wouldn’t advise it.

Inevitably, you will have to do some studying while working at clients. It is difficult to motivate yourself to study in the evening after a long day at work. In my experience, you might only get one hour of useful studying done during the week. So, say goodbye to your weekends too.

The exam material is not difficult. But the actual exams are made difficult by the volume of material and the added pressure of a full-time job. Fortunately, you only need 55% to pass the exams. The only distinction is pass/fail, there are no prizes for high marks. Although, your CV will look better if you pass all the exams first time.

Studying and exams are fitted around the busy season (which is Jan to April). First years take some exams soon after they join in September. The next lot come at Christmas or June. This cycle is repeated for two more years.

Taking the exams

You can find out about the exam structure on the ICAEW website. I’ll just talk about some of the funny idiosyncrasies:

• You will live in fear of the public transportation failing at the wrong time
• The ICAEW provide a calculator for the exam that has keys that don’t work properly
• The multiple choice exams are done on computer, which is sensible.
• Instead of providing pen and paper for your calculations, you get laminated ICAEW-headed paper and a felt-tip pen.
• The examiners spend their time wiping clean the laminated paper.
• The results are available by the following morning either by text message or the ICAEW website.

Win!

You feel elated when you pass an exam, but it’s more a feeling of relief than happiness. Because, there are no winners, only those who don’t lose.

Limitations of this article

I’ve tried to be as general as possible, but I haven’t talked about:

• Other similar qualifications – such as the ACCA or CIMA.
• Other accounting bodies – such the ICAS
• I only have experience of the first stage exams (the e-assessments).

Written by YP - an audit trainee at a big four firm

If you would like to post on the WikiJob blog, just email Ed@WikiJob.co.uk - your contributions are always appreciated!

• WikiJob's blog
• Login or register to post comments