Choosing Between Taxation and General Assurance/Audit for an Undergraduate Internship
When deciding between taxation and general assurance/audit for your undergraduate internship, the choice often comes down to personal interest, career aspirations, and the reality of what these roles entail. Let's dive into the intricacies of each field and how you can make an informed decision.
Understanding the Roles
Taxation involves the study and application of tax laws to ensure compliance and optimize financial strategies. The path to becoming a tax expert typically includes obtaining a Juris Doctor (JD) degree, which provides an in-depth understanding of tax law and regulation. General assurance/audit, on the other hand, focuses on analyzing financial records and business processes to ensure accuracy, reliability, and compliance. This field is crucial for maintaining financial integrity within organizations.
Forensic Accounting: An Exciting Alternative
If you're intrigued by the idea of forensic accounting, a fascinating subfield of general assurance, you have the option to intern with firms known for their expertise in forensic accounting and dispute resolution. Firms such as Ernst Young (EY), PwC, Deloitte, and KPMG offer such opportunities, providing a unique blend of investigative and analytical skills. As a forensic accountant, you would delve into complex financial data, uncover discrepancies, and serve as a key figure in legal proceedings.
Internship in Internal Audit
Alternatively, you can consider an internship in internal audit. This role is quite distinct from external audit, focusing on the operational processes, financial management, and IT systems within an organization. As an internal auditor, you will learn about compliance, fraud detection, and the intricacies of internal controls. This role also allows you to apply your forensic accounting knowledge, as reviewing controls and detecting fraud are integral parts of the job.
Exploring Both Fields
The straightforward answer is to try your hand at both fields. An internship in taxation this year, followed by an internship in general assurance/audit during your winter or summer holiday next year, can provide you with a comprehensive understanding of each role. While seeking advice from experts is valuable, firsthand experience is equally important. It’s difficult to fully comprehend the nuances of a career path without actually experiencing it.
Personal Perspective on These Fields
I have worked in all three fields, and my experience shows that forensic accounting, while highly specialized, can be quite demanding. Many forensic accountants either come from a background in auditing or have previous experience in law enforcement. While this field is exciting, it can also be incredibly challenging, especially when dealing with monotonous tasks like reviewing cheques for anomalies.
On the other hand, taxation offers a more dynamic and engaging environment. Unlike auditing, which is often seen as a tedious task of dissecting others' financial records, taxation offers a more varied and interesting set of challenges. However, the auditing process only becomes truly interesting at a senior level, such as at the partner level, where you can delve deeper into complex cases.
Attending an advanced auditing course, like the one I took, provided insights into why auditors often miss fraud, and it was realized that even the most experienced fraud examiners found it unrealistic to catch every case. A professor in my advanced auditing class only managed to catch one embezzlement case in a long career. In my experience, forensic accounting is also quite demanding, as I spent two weeks reviewing cheques, a task less enjoyable than being an auditor.
Overall, while forensic accounting and auditing are demanding and can be dull at times, they offer unique opportunities to make a significant impact on an organization. Regardless of your choice, gaining experience in both fields can provide you with a well-rounded understanding and a clearer direction for your future career.