Ernst and Young is a global professional services firm that provides audit, tax, and advisory services. It was formed in 1989 by the merger of Arthur Young & Co. and Ernst & Whinney. The document discusses Ernst and Young's business, values, history, human resources practices, and changes in the public accounting industry. It also provides advice for staff accountants transitioning to managers and steps managers can take to help prepare staff and themselves for potential partnership.

1. ERNST AND YOUNG CASE STUDY
ERNST AND YOUNG CASE STUDY
PRESENTED BY :
•RASHID ALI
•WAHEED MURAD
•TANWEER
•ZAHID NADEEM
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2. Overview of the case
CP session
Ernst and Young efforts to become global resource
and world class client service
Advice for McDonald to Sykes
Problem solving

3. OVERVIEW OF ERNST AND YOUNG
 Nature of business
(audit and assurance, tax, corporate finance)
Ref(P, 4 Para 5)
 Values statement of E&Y
o Doing the Right Things & Protecting Public Interest
o People who demonstrate integrity and teaming
o People with energy, Enthusiasm and the courage to lead
Ref(P,10 EX 1)
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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)
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5. HUMAN RESOURCE
 Ernst 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)
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6. HUMAN RESOURCE
 Start 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)
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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)
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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)
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9. Culture of Ernst and Young
 The firm support an inclusive environment among its
people
 The 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)
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10. •Hope for your participation
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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)
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12.  2.
How should staff accountants prepare for the transition to
manager?
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For transition of staff accountant to manager following steps are fruitful
Training
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)
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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)
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