THURSDAY, APRIL 14, 2011

Auditing job kills - whose mistake is it?

Recent news about an auditor in China working for the Big 4 audit firms dying due to possible overworking during the peak periods have highlighted the lack of awareness of the professional regarding simple professional behaviour. http://english.cri.cn/6909/2011/04/14/2021s631992.htm One of the fundamental rules for accountants is the need to ensure that you are professionally capable of handling the job, by accepting too much on the plate and not requesting for additional time or additional support does indicate a failure in application of professional principles. I would have to blame 3 parties for this incident - the staff, the firm and the government. Firms - Lack of risk assessment, since this is a basic risk factor to be considered. Over-working a staff will significantly increase their health risk. European regulations regarding working hours have already addressed this issue overworking the staff increases the social cost to the society significantly, hence the need for regulation to reduce the risk of this happening. - Unfortunately, for countries in the Asian hemisphere, this is a slow and steady process, since they want to use "cheap labour" as a source of competitive advantage - Firms should adopt a more globalised approach in managing risk, but once again the geographic divisionalisation would allow each groups to have different manner in which they approach risk and ethics. Staffs - When there is a clear signal that your body is tired - listen to it, there is no point pushing it further - Jobs and the career is just one aspect of material gains, there are many other ways to financial freedom - Gaining an experience should not be done at the expense of the health. Government Overall at the end of the day, we can only blame the government, who are appointed to take care of their citizen (all of them) not only from external threats (foreign occupation) but also internal threats from companies that exploit the citizens. Lack of understanding of the human resource department regarding the pressures that companies exert on their intellectual capital may be the source of this problem. This is just my opinion on the matter - since there is significant buzz about this matter in facebook.
Posted by Mr. Jay MSc (Accounting & Finance) UK, Pg.Dip Marketing (UK) FCCAat 10:21 PM

Auditor's Death Sparks Debate

2011-04-14 10:26:29 Shanghai Daily Web Editor: Zhangxu

Pan Jie [Photo: Xinmin Evening News]

An entry-level auditor at the Shanghai office of PricewaterhouseCoopers has died of acute cerebral meningitis, igniting public discussion and media attention as some believe work fatigue contributed to the woman's death.

Pan Jie, 25, died on Sunday of acute cerebral meningitis, which is caused by a viral or bacterial infection. Symptoms include severe headache and fever.

Dr Wang Guisong, an expert in the neurosurgery department at Renji Hospital, said overwork can make people more vulnerable to infections.

"Based on her symptoms and her low white blood cell count, it's reasonable to conclude that overwork led to a weakened immune system, which makes her more vulnerable to infections," Wang said. "When an infection worsens over time, people can develop acute cerebral meningitis."

A PwC Shanghai official denied in an interview with a local TV station Wednesday that Pan's death was caused by work fatigue.

The official said the firm has sent a team to console Pan's family and would offer assistance with funeral arrangements if necessary. The company will also hire psychologists to counsel employees grieving over Pan's death, the official said.

Despite PwC's denial, Pan's friends still believe overwork was partly to blame for her death.

Pan's classmate and friend, surnamed Yu, said Pan had told her before she died that she had been working up to 18 hours a day and about 120 hours a week. One of Pan's colleagues, a senior-level auditor at PwC, who asked not to be identified, told Shanghai Daily 100-hour work weeks were common in recent months as it was peak auditing season.

Friends described Pan as "perfect" with a charming, friendly personality.

They said Pan did well in school. She entered Shanghai Jiao Tong University at the age of 16 and completed two master's degrees. PwC hired Pan in September.

She worked hard and was looking forward to gaining experience at PwC, a multinational giant in the financial consulting industry, according to her friends.

Pan asked for sick leave on March 31 due to a cold. Doctors said she died of acute cerebral meningitis that developed from the flu virus.

Pan seemed to be aware something was wrong. On March 31, Pan wrote on her microblog: "Whenever there's a chance to take a break, a fever comes. My body, I am at a loss whether I should praise you for being understanding or just the opposite."

One of the most striking comments on her microblog was a post about the death of an auditor from KPMG, another global auditing firm, this year.

"I can accept overtime. I can also accept out-of-town business trips. But on learning a young worker died from fatigue at kp (KPMG), I feel something has broken my bottom line to endure," she wrote.

Feng Lijuan, chief HR analyst with 51job.com, a headhunting firm, said office workers need to eat well and get adequate sleep.
TUESDAY, MARCH 29, 2011

About the audit industry

This post was originally published at Going Concern.com on August 19, 2009. The Top Ten Reasons You Still Want To Work for the Big Audit Firms: 10. A career in Tax at KPMG is dynamic and intellectually demanding. Could you take the pace? Perhaps Unfortunately, the pace has slowed considerably for everyone cut yesterday. 9. [At Deloitte] audit isnt what it used to be. Our clients expect more of us. And our risk-based approach, experienced professionals, comprehensive methodologies and technical resources deliver. Yes, at least 50 billable hours a week, meaning youre on the clock at least 80, managing the risk of falling asleep, your face landing in leftover stuffed pizza scattered all over the conference table. 8. PricewaterhouseCoopers is all about you. Your personal and professional development, your achievement, your life long learning, your individuality and your choices. Actually, PwC is all about PwC. 7. Im going to Disney World! I think weve seen the last of first year training blowouts at Disney World. Prepare yourself for Houston in August. 6. [At EY] your base salary compensates you for the value you bring to the firm and for meeting our everyday high expectations. Our goal is to make base pay externally competitive, internally equitable and related to performance. If only you knew what your salary was going to be. Job offers made with no start dates, no salary info. Previous salary commitments retroactively adjusted for market conditions. Or is it the inevitable overtime pay requirements? Sign up, forsake all others. Dont call us, well call you with the details. 5. At PricewaterhouseCoopers, we are committed to ensuring women have the opportunity to build a rewarding career. Not just because its the right thing to do, but because its a business issue that affects our bottom line.Yes, ladies, you are a business issue. You can make us money or cost us money. Especially when youre a whore. 4. BDO Seidman offers a distinctly different option for talented professionals as they evolve their careers. Unless or until they shrink enough to cry too poor to pay the pending $571 million judgment. There are some Tax positions open, however. But dont expect to make partner soon in the UK. 3. PwC is blogging! Yea! They embrace social media! WellYes If youre interested in the Gender Agenda. Because gender issues are a business issue. Just dont try to make it a real conversation or youll get banned. 2. Deloitte Wants You! For U.S. junior military officers transitioning to the business world, Deloitte offers an unparalleled opportunity to create a challenging and rewarding career. Unfortunately, the BearingPoint professionals just acquired may not have as easy of a time fitting in. Some of them actually started at KPMG! 1. You want to work with the best. The people of KPMG are committed to corporate citizenship; they want to lead change and be involved in dynamic solutions that improve the societies in which they live and work, says Tim Flynn, Chairman, KPMG. Yes, at clients such as Citigroup, New Century, Countrywide, Fortis, Fannie Mae, Rentokil, HSBC Sourced from re: auditor Well it seems that the industry itself is suffering from a weird form of self delusion Recent issues about bus drivers in Malaysia that have been over worked resulting in accidents that cause lives would have highlighted the risk for audit firms in Malaysia regarding staffs working long hours (just because the partner did it, therefore all the others have to do it)

In my opinion I think the partners are just taking revenge on the staffs by maintaining a culture that they had endured - legacy in the firms. The long hours of work increases the risk that audit staffs will do the following: - doing the job to get it complete rather than be through - missing out on items that should be investigated because they were too sleepy or just too tired - increasing the stress levels significantly - leading to poorer health conditions later on When a firm talks about their staff as their assets and then has a very high level of staff turnover (which they are willing to accept) it seems to indicate that the staffs are just a disposable diaper that is to be used and discarded after that. Knowledge based organisation treasure their staffs by trying their best to retain them, but in the audit industry it seems that most of them are trying to get you out faster by increasing the pressure. Keeping partners money growing or people working constantly or just eeeh yuck about the work seems to be focused in partners income ability. I have heard of audit partners and managers making statements like this - if I can work during Hari Raya, that means you can work during CNY or vice versa. Now is that the most lame excuse given to justify asking the staff to work. The partner reaps the profits which increases with the work, the staff gets nothing (only negative remarks from other family members). What is wrong with the CULTURE? I suppose that clients and audit committee should actually review the work plan prepared by the firms to identify the possibility of this happening - since it is their duty to safeguard the profession. Alternatively it would be MIA, the regulators that should own up to this task, since a failure due to human error would lead to negative reputation not only for the profession but also the regulators. If you want to know about the so called best firm around in Malaysia and the level of greed that is involved by them to get to the top irrespective of consequences : visit http://zarinahtakesapaycut.blogspot.com/2011_03_01_archive.html

I suppose that the most important thing for you to do as a student of accounting Select the path that will result in the best possible outcome for you, the firm should be seen as a tool for you to get your required experience and exposure to reach your destination - don't get too emotionally attached to the firm, don't get blinded by the pay stay focus on your career goals and get there. This means that you should possibly try your best to get the most experience and select the line that best suits you - which is very hard for many.

Good luck in planning your career.