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Independent Audit Sector
According to the Commercial Code legislation, each company is not audited
independently. Of course, there are rules for being subject to independent
auditing. Companies may be subject to independent auditing according to the
number of employees, turnover, capital structure, job description (different
criteria exist for financial companies) and the criteria of being public.
However, for which reason they take out the independent audit, it becomes
important for some reasons.
I can list the four important reasons I have seen so far in the industry as
follows:
1-The companies
that take credit from banks present the reports of a reliable audit company to
banks (especially foreign banks refer to the reports of internationally reliable
audit companies.)
2-Companies that are traded in the market want their investors in the
stock market to increase their reliability in their companies' financial
performance.
3-In companies with foreign partners, foreign partners want to control transparently how local partners perform in operational/financial terms.
4-The companies
with multi-partners want to audit the activities of other partners over a
reliable financial statements and make presentations accordingly.
If companies want to take credit from banks from abroad, they should present
their financial statements to the potential investors in the market, or ensure
that other partners do not doubt them, they have to have their independent
audits performed by reliable companies. Only in this way can they achieve their
desired goal. Because the people in the market can predict what kind of
disruptions may occur in the financial statement audit. Even the slightest
mistake can affect the appearance of the financial statement either positively
or negatively. Or, even if it is unlikely, the balances in the financial
statement can be shown differently by bribery or misleading and a positive
report can be given for a table with a negative appearance.
This has consequences that will negatively affect the transparency of the
company's activities. In fact, it may worsen the situation until the bankruptcy
of the company if it occurs.
The biggest example of this is the 'Enron Scandal', which emerged in
2001 and resulted in the 7th largest company in the world to sink and the 5th
largest independent audit company was forced to merge with four other large
companies.
As you can see, independent auditing is a vital process for companies.
The four biggest companies operating in the field of independent auditing
today are as follows:
1-PwC
2-Deloitte
3-EY
4-KPMG
Upsides Of
Audit
Generally, large and multi-partner companies want to have their audits done by
these companies, which everyone calls 'Big Four'. The main reason for this is
reputation, reliability, international validity and knowledge. If you are an
auditor working in these companies, you have the opportunity to experience
bigger companies and learn faster than those working in other independent audit
companies.
In addition, the pace of work in these companies is somewhat inhuman and you
are expected to learn a lot in a very short time. When you work 6 years in a
normal company, in case you can switch to a different company as 'senior
specialist', but you can move to another company as 'manager' at the end of 6
years in these big four companies. These companies are the most ideal starting
point for people who want a good career, although it may sound difficult.
In other words, we can list the upsides as follows:
1-Fast learning
2-Quickly climbing career steps
3-Getting more
different audit experiences
Of course, it is a different motivation for them to have a holiday of at least
2 months after a busy period of 6-7 months.
You can read the post in which I explain 7 life lessons entrepreneurship taught me in detail in this link.
If you are interested in online money making, career, personal development, investment and entrepreneurship and want to make more money, stay tuned.
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