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ERNST AND YOUNG CASE STUDY PRESENTED BY :

• RASHID ALI • WAHEED MURAD• TANWEER• ZAHID NADEEM

AGENDAOverview of the caseCP sessionErnst and Young efforts to become global resource and world class client serviceAdvice for McDonald to SykesProblem solving

ERNST AND YOUNG CASE STUDY 3

OVERVIEW OF ERNST AND YOUNGNature of business (audit and assurance, tax, corporate

finance)

Ref(P, 4 Para 5)

Values statement of E&Yo Doing the Right Things & Protecting Public

Interesto People who demonstrate integrity and teamingo People with energy, Enthusiasm and the

courage to lead

Ref(P,10 EX 1)

ERNST AND YOUNG CASE STUDY 4

HISTORY In 1913 the relationship of Clarkson, gordon

and Dilworth was formed. Clarkson gordon and co was part of Arthur Young and company

REF(P, 4 Para 3)

In 1939 the firm expended include management consulting services

Ernst and young international was formed in 1989 by the merger of Aurther Young firm including Clarkson, Gordon and Co. with Ernst Whinney.

Ref(P, 4 Para 4)

ERNST AND YOUNG CASE STUDY 5

HUMAN RESOURCEErnst young employed 114,000 people in 670

office in 140 countries In Canada Ernst and Young employed 3200

people in 13 offices Ref (P, 4 Para 4)

Ernst and young got various awards on HRM practices

Ref (P,4 Para 5)

ERNST AND YOUNG CASE STUDY 6

HUMAN RESOURCEStart career as staff accountant with major in

audit work Staff accountants promoted to senior staff

accountant Senior staff accountant to manager Manager to senior manager and senior

manager to partners Ref (P 3, Para 4 and 5)

ERNST AND YOUNG CASE STUDY 7

CHANGES IN PUBLIC ACCOUNTING FIRMS

Due to competitive pressure firms diversify businesses portfolio (Legal services)

Ref (P, 1 last Para)

Merger of public accounting firms Ref (P, 1 Para 1)

Due to accounting irragulatries in public accounting firms many corporate sector business collapse

REF: (p 2 Para 1)

ERNST AND YOUNG CASE STUDY 8

CHANGES IN PUBLIC ACCOUNTING FIRMS

In Canada the public accounting firms govern by CICA

Ref (P 2 Para last)

Due to these collapse in corporate sector reforms were made

which create additional reporting requirements and regulations

Ref (P 2 Para 1)

ERNST AND YOUNG CASE STUDY 9

Culture of Ernst and YoungThe firm support an inclusive environment

among its peopleThe firm “People First” culture was directed

to achieve both personal and professional goals

Top 10 Family friendly employer in Canada Ref (P, 4 Para 5)

10

•Hope for your participation

ERNST AND YOUNG CASE STUDY

ERNST AND YOUNG CASE STUDY 11

Problem solving 1. What are the essential differences between the roles of a staff accountant and a manager? How well has Lauren McDonald explained these differences to Alexandra Sykes?

Staff accountants performed a significant amount of the auditing work, Managers had many obligations they reported to the partners and managed a group of staff accountants, including review their performance and aiding in their personal career development.Manger was also responsible for managing their clients performing a detail review of all of the audit work and supervising interaction. Ref (P, 3 pars 3 and 4)I report to counseling partner, just as staff accountant report to manager

Ref (P,8para 5)

ERNST AND YOUNG CASE STUDY 12

2. How should staff accountants prepare for the transition to manager?

For transition of staff accountant to manager following steps are fruitfulTraining Networking conference Training on independence and technical topics

Ref (P,7 Para 1, 4) Helped plan, supervise and review the audit engagement

Ref (P,11 Exhibit 2)HR related practices (recruiting interviews at Ivey, summer intern

candidate visit to office, discussion issue with work team)

Should be mentally prepare for handling more than on client (five to six) Ref (P,7 Para 6)

Time management (allocation of time to deal with unexpected issue) Ref(P, 8 Para 6)

ERNST AND YOUNG CASE STUDY 13

3. What should Lauren McDonald do to help her staff prepare? What should she do to prepare herself for possible partnership? Lauren McDonald should prepare her staff through providing the knowledge of what your role will be in next step and also incorporating into your current role.McDonald should develop the hard and soft skills necessary to perform adequately at that level as well as those required to be promoted to the next level in the firm.

Ref (PP, 9, 4 Para 4, 2)