he industry I desired to be employed in immediately after my undergraduate degree is the Accounting industry. The accounting industry will allow me to obtain my CPA designation and jump start my career. The accounting firm I will work for is KPMG LLP. KPMG has upward of 150,000 employees world wide. The industry classification code is 54121. (NACIS) The goal of accounting firms is to provide accounting services such as Audit, Tax and Advisory to all clients. According to Marketline the Canadian Accountancy market grew by a slim 0.2% in 2012. In 2012 the value of the market is $11.9 billion. Marketline has demonstrated that the industry is growing at a slow pace. Audit is the largest part of the accountancy industry in Canada. It accounts …show more content…
Some of theses changes are mandatory, while others can be used as management sees fit. With the reputation of accounting trying to progress and be seen as “trustworthy”, regulations and processes are continually being put in place. “The federal regulator OSFI has proposed and issued new regulations concerning corporate governance, ORSA, cybersecurity, solvency and capital.” (Ernst and Young.) The accounting industry has to continuously adapt to these changes by informing employees, clients and stakeholders. Economic Trends Impacting the Accounting Industry: The economic trends that impact the industry are very important to consider. The economic trend that mostly impacts the accounting industry is the state of the economy. When the economy is strong, companies need the assistance and services from accounting firms. When the economy is weak, companies are less likely to request the services of accounting firms. The growth of accounting firms is relatively small. “The Canadian accountancy market has seen low to moderate growth since 2008 and the market is forecast to continue performing in this way through to 2017.” (MarketLine, pg …show more content…
The great thing about accounting services is that many companies are obligated to use them. Seasonality of the accounting industry is also a major trend. Majority of companies have their year end December 31st, therefore January-June is the busiest months for an accounting firm. However, the market value is unlikely to decrease. According to MarketLine, accounting firms are “exposed to recurring stream of revenues which provides stability and also a sustainable competitive advantage”. (pg 14.) The table above shows the weaknesses and threats of KPMG. The table is from the MarketLine KPMG Company profile, (pg. 13) however I find it pertains to all other big four companies. The economic recovery in Europe (a key market place) has been very slow. If this continues to happen it could impact the accounting industry greatly. Social Trends Impacting the Accounting Industry: In 2008, the financial crisis took a major toll on the reputation of the accounting industry. Many people thought that they were irresponsible during their audit practices. Sarbanes Oxley Act came into affect into 2002. “Its intent was to improve corporate governance and restore the faith of investors”. (Forbes. Pg 1) However, the accounting industry reputation was damaged again in