Tax vs Audit for a CPA firm

Parent Cafe
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<p>I know most parents on here are not in the accounting profession but I figure it doesn’t hurt to post. Many of you have given input that exceeded my expectation. So once again, I come here for some help:</p>

<p>So the question is which one would you choose and why?</p>

<p>It would be especially helpful if people already working in the industry can give their insights. What do you like and dislike about what you are doing? I heard that audit generally has higher TO than tax? If that’s the case, what makes it “worse” than tax?</p>

<p>I find tax may be a bit more interesting to “play with” at the moment. Planning and structuring look “fun”. On the other hand, I am also attracted to opportunies in SEC, GAO, and bank examination and feel a bit more sense of purpose in those jobs (I live in DC). My permanent resident status means I am not eligible to apply for most fed jobs until 2011 (though Permanent Res maybe be considered if they are really short on people). In the meantime, auditing experience would seem to provide a more relevant experience and preparation for them. One may wonder why not IRS as far as “sense of purpose” goes; I find protecting customers and investors more satisfying than going after tax revenues. I grew up in Hong Kong with low tax rates so I am not a fan of heavy taxes anyway. Besides, IRS got a bad rep everywhere. Perhaps I shouldn’t think that way but I really don’t want to be the running joke when I tell people where I work. Auditing also provides transferrable skills/knowledge for controllership and general financial system and management in just about any corporation and industry while tax is a bit narrower and specific. I like the investigative aspect of auditing but I am not really sure what it is like to look at numbers all days long. I like the strategic/analytical side of tax planning; but tax codes are complex and huge; I am not sure what actual work would be like given that. Also, I am not sure how well CPAs compete/stand in that area with the presence of tax laywers.</p>

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<p>A few thoughts. In order to become a CPA, most states now require 150 hours (effectively a MS or more). You can do tax work in a CPA firm, but my guess is in the big CPA firms, most new hires for tax are attorneys, especially in NY, but not necessarily from great law schools. But CPA firms have a lot of tax work. As you get more experience you will spend more time, in either tax or audit, with clients and writing (more writing in tax). I would advise you to get an accounting degree and see if you can intern in both audit and tax.</p>

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<p>^I just started my master of accy; there’s a firm asking for resume submission for either the tax or audit intern. so i am having a hard time to decide. i am leaning toward auditing…</p>

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<p>It is not uncommon to spend a year in audit and then move to tax. Some very hard working people go to law school at night. Good luck.</p>