Jim and Cecilia were having lunch at the public accounting firm cafeteria downtown and discussing the future. They had both been recently promoted to managers, with incomes approaching six figures. Cecilia and her husband had recently purchased a house, while Jim had accumulated a sizable nest egg, living with his parents. They were talking about the “departed ones”—their peers who had left the firm and were working as internal auditors or executives or had started their own business. Others had stayed with the firm but were now working as specialists in areas other than financial statement auditing. Jim had an idea that had been in the back of his head for two or three years—what about an online cleaning business? There were so many large condominium towers near the office—people could book their cleaning appointment online and then have the cleaning done within two or three days. Cecilia smiled, “I don’t think I would take that kind of risk, having just committed to a mortgage, but I regret not using my skills in starting a new business.
REQUIRED
Using the definition of auditing, identify the types of skills that Jim and Cecilia have acquired at the public accounting firm. How would these skills translate into being able to run your own business? What types of skills might Jim need to run this new business?