Page 166 - Accounting Principles (A Business Perspective)

4. Completing the accounting cycle

As a senior accountant, Tracy will be responsible for the day-to-day management of several audit
engagements during the year. She will plan the audits, oversee the performance of interim audit

testing and direct year-end field work. She will also perform much of the final wrap-up work, such
as preparing checklists, writing the management letter and reviewing or drafting the financial
statements. Throughout this process, Tracy will spend a substantial amount of time instructing and
supervising staff accountants.
The two most critical skills needed at the senior level are (1) the ability to organize and control an
audit and (2) the ability to teach staff accountants how to audit.
Manager/senior manager—General manager and salesperson

Upon promotion to manager, Tracy will begin the transformation from auditor to executive. She
will manage several audits at one time and become active in billing clients as well as negotiating
audit fees. She will handle many important client meetings and closing conferences. Tracy will also
become more involved in the firm's administrative tasks. Finally, outside of her client service and
administrative duties, Tracy will be evaluated to a large extent on her community involvement and
ability to assist the partners in generating new business for the firm.
The two skills most emphasized at the manager level are (1) general management ability and (2)
sales and communication skills.
Partner—Leader and expert

As a partner in the firm, Tracy will have many broad responsibilities. She will engage in high-level
client service activities, business development, recruiting, strategic planning, office administration
and counseling. Besides serving as the engagement partner on several audits, she will have
ultimate responsibility for the quality of service provided to each of her clients. Although a certain
industry or administrative function will become her specialty, she will often be called upon to
perform a wide variety of audit and administrative duties when other partners have scheduling
conflicts. She will be expected to serve as a positive example to those who work for her and will

train others in her areas of expertise.
At the partnership level, what is looked for is leadership ability plus the ability to become an expert
in a specific industry or administrative function.
In the meantime
Those planning on a public accounting career should do more than just learn accounting. To
develop the needed skills, a broad education background in business and nonbusiness courses is
required plus participation in extracurricular activities that promote leadership and
communication skills. It is never too early to start building the skills for long-term success.
Source: Dana R. Hermanson and Heather M. Hermanson, New Accountant, January 1990, pp. 24-

26, © 1990, New DuBois Corporation.

The development of the personal computer (PC) in 1976 and its widespread use a decade later drastically
changed the accounting systems of small and medium-sized businesses. The number and quality of accounting
software packages for PCs and the power of PCs quickly increased. Soon small and medium-sized businesses could

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