Q: Big4 - Yearly salary increment

Ok simple logic

Increase charge out rate means per hour of your work is more expensive. Thus the cost of delivering an engagement increase

If the audit fee doesn’t match the increase (highly likely, have seen client reluctant to give more audit fees and threaten to change service provider), the margin for an engagement will drop

Margin is a KPI for Mgr and above. So to have good margin, engagement mgr or partner will pwn the junior staffs to charge even less hours

And the conflict of interests come in when the KPI of staffs, ironically, is the utilisation of their hours charged to engagements

If u don’t unds the above u deserve to be in big 4 audit forever

So by that logic, KPMG m and above will have harder time getting good profit margins, so harder to promote right?

What is the best exit for a big auditor that audits banks and funds?
1) Regulatory Compliance
2) Internal Audit
3) finance Controller

Originally Posted by Unregistered

What is the best exit for a big auditor that audits banks and funds?
1) Regulatory Compliance
2) Internal Audit
3) finance Controller

How many yoe brother? I would say regulatory compliance is the best choice here
Would be good if u could do 2 years at mas before jumping again

Don’t go internal audit

Dead end job + basically every department hates u guys

Originally Posted by Unregistered

So by that logic, KPMG m and above will have harder time getting good profit margins, so harder to promote right?

im not sure about that, but looking at the audit division alone, blue admits like 1-2 audit partners each year which is way lesser than yellow and orange. yellow around 5, orange around 3-4

Originally Posted by Unregistered

How many yoe brother? I would say regulatory compliance is the best choice here
Would be good if u could do 2 years at mas before jumping again

Approaching S2 soon. So is Audit S2 > MAS AD > Regulatory Compliance at banks?

Originally Posted by Unregistered

Don’t go internal audit

Dead end job + basically every department hates u guys

Really? I thought there is a regulatory need to have IA in a financial institutions? Can’t be as dead as accountant?

Originally Posted by Unregistered

You mean just by internally increasing your charge out rates you expect all your clients to guai guai kowtow and increase fees for you? Hahahah.

You will find out top line doesn’t change, but margins keep getting lower and you can’t book the same number of hours for staffing but wait, why costs increase but our salaries didn’t hahaha.

But just by internally increasing charge out rates doesn’t mean our salaries increase, so there is no actual change to cost also.

So end of the day, This is just a performance measurement metric. Unless you are able to increase fees or salaries.

Originally Posted by Unregistered

Can explain how increasing charge-out rate lower margin? Audir fees will be higher, no?

Any boss can decide to increase prices, but will their customers accept?