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Bdo that is not right at EY. Executive directors are what you are describing.
It's a legal/wording matter -- principles pay into the partnership and are just like partners from an ownership perspective. However, to be a an accounting firm in the US, all "partners" must be CPAs.
Got it, thanks.
Partners are CPAs. However, they are both equal shareholders of the firm.
I believe at EY there are principals who are partners. I don't think principals are equal shareholders. My experience (at least from an audit perspective) is that people they promote to principal are very strong technically but don't have the personality to be partner... I may of course be totally wrong here! Lol
At pwc principals and partners have different titles but that's the only difference. I have heard principals are encouraged to get a cpa though.
@BDO 1 I believe the distinction between principal and partner is different at Big 4. When I was at GT, there was an actual difference in career progression and ownership between principal/partner track. But at PwC, partner = CPA while principal = exact same as partner but w/o CPA. Not really sure why it's not the same everywhere, but it was confusing as hell for a year until I figured out principal doesn't mean the same thing here.. Still not 100% clear though 🤔🙄
Guys... Easy answer. Partner = CPA principal = lawyer. Both have an equity interest, so the same
Principals are not all lawyers. Lot of CISAs and advisory folks with no required cert
And I think the firm cannot have more than 25% owned by principals.