Difference between Audit and Transaction Services

Hello everyone,

I recently completed an internship in Audit at one of the big 4. I've seen a lot of people on here mention transaction services is basically glorified audit. Would anyone know how the two roles differ in terms of your day to day role as a graduate? I'm trying to decide which of the two I should choose for a grad role. Thanks.

Transaction Services is a term for a broad range of services but in any case, it is much much much better than audit, even for the simple fact that it is not audit.

It includes things such as Corporate Finance/M&A which in the Big Four is basically a mid market investment bank, also valuations as well as some due diligence work (which is the glorified audit you speak of).

I would kill to get from audit to TS so I suggest you do the same (minus the killing).

A lot of people go from Audit to TS after they qualify and stay there (or move on to banking) but you will never see anyone going the other way.

A lot of people go from Audit to TS after they qualify and stay there (or move on to banking) but you will never see anyone going the other way.

Wrong. Audit is a safe bet with predictable work. TS is much more dependent on deals volume and the work is less regular and more time pressured.

Safer more predictable yes. But its also some of the most soulcrushingly dull work you'll ever encounter.

Disagree. Go stack some shelves then compare that to working with a variety of top brands on a daily basis.

Yes invoice ticking sucks. Yes there is an extortionate amount of admin. But look beyond that, there is interesting work in audit to be had (albeit more on large clients, I often feel that those who work exclusively on small businesses miss out even if they get earlier exposure to the management side).

Of course there are other dull jobs too.

I find the fundamental nature of audit work to be boring: you're just checking whether an accountant did their job properly. It has minimal impact on the future of the business. And that is why I don't like it.

Granted some others will but speaking to most people working in Big Four audit, they don't like their jobs and will leave at the first possible opportunity. TS is a very popular exit route.

You've actually got very good reasoning then in my opinion. This is what I also dislike about audit, rather than the nonsense people tend to complain about.

What are the usual things people complain about? I've generally found it to be this, plus all the ticking.

I have mixed feelings about audit. I know it can be soul destroying, especially in the first year when you might spend your entire day auditing cash, but at the same time I think that it's importance is understated. Rather than seeing the role as reviewing another accountant's work, I prefer to see it as protecting stakeholders, especially shareholders and employees, from fraud or error.

I also wonder whether it is the best stream to go in to from a prestige point of view and I stand to be corrected on this as this is only a theory! However, in Audit, KPMG, Deloitte, PwC and EY are the unrivalled 'Big 4.' However, in consultancy and tax, they have equals like Bain & Company whilst in Corporate Finance, they are positively mid-tier when compared to the top investment banks. The Big 4 really applies to audit (unless you're Australian, in which case it refers to a chain of campsites...)

In before the Bain consultants lynch you Big 4 aren't on par with MBB.

Your point stands though, big 4 are the best companies for audit and I'd argue also for tax. They aren't the best for consultancy (MBB + others) or corp finance (basically all global banks).

However, I think most would agree that big 4 consultancy / corporate finance carries more prestige than big 4 audit. It's a reflection on the industry more than the companies position.

That is a very fair comment. I never actually meant to say 'equals,' I should be careful what I type! I'm not sure if Big 4 stand out for tax either to be honest, they certainly have big rivals in the consultancy world.

I'm confused by the appeal of Big 4 consultancy to be honest. In theory, I could move from where I am (an investment bank) to Regulatory and Risk consulting at a Big 4 firm but if I did the qualification would be the CISI Chartered Wealth Manager programme. This is all well and good but it's hardly the ACA.

That is a very fair comment. I never actually meant to say 'equals,' I should be careful what I type! I'm not sure if Big 4 stand out for tax either to be honest, they certainly have big rivals in the consultancy world.

Most of the top consultancy firms can rival the Big 4 in tax consulting.