Currently 2nd yr audit associate in a very niche industry at top 10 firm, have opportunity to go to FDD at a regional firm (top 100). Is this a lateral career move? Don’t want to get pigeonholed but worried about smaller firm size if I leave.

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Top 100 CPA doesn't mean a whole lot. Is their TAS team 5 people or 50? And then quality matters even more. Look at what firms their partners/directors mostly come from. The difference in quality in work from small and mid tier firms I've seen is staggering. Message me the name if you want an honest opinion.

Without info I'd say probably a no but TAS seems to be getting harder to get into.

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Certainly not lateral. You can always switch to FDD at another firm but getting deals experience is very advantageous over someone without

I would say try go to a mid market firm, at least.

A top 100 firm will be super small and processes will be bad. Mid market firms, while not perfect, will provide better deal experience and the opportunity to move up to big 4 in the right market environment.

I think you’re right to be worried about being pigeonholed/stuck.

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