Industry Q&A with Michael Abbott, Director of Audit Services in the New York State Education Department

Industry Q&A with Michael Abbott, Director of Audit Services in the New York State Education Department

Q: When did you decide to become a CPA?
A: In college, I was taking a lot of math and science courses, but I was unsure as to a career. My father and a friend suggested I try accounting, so I took an accounting course and changed my major. I began working in the accounting field in 1977 and completed my requirements to be a CPA in 1981.

Q: Which school’s accounting program did you attend?
A: I attended SUNY Albany’s undergraduate accounting program, took a few graduate accounting courses and earned an MBA from Sage College.

Q: Where did you get your start? What led you to your current position at the State Education Department?
A: A few days after graduating, I started working at the NYS Department of Taxation and Finance. After about a year, I transferred to the Management Audit Unit in the NYS Office of the State Comptroller and was responsible for conducting economy, efficiency and effectiveness audits of state agencies. In 1990, I was offered a position with the audit unit in the New York State Education Department (SED), and in 2003 I was appointed the director of the audit unit.

Q: What were your expectations in pursuing an accounting career?
A: I really wasn’t sure what to expect. I knew that within the accounting profession there were various opportunities in areas such as auditing, accounting, consulting, tax work, etc., and that you could work in public accountancy, government or industry. Each of these offered particular challenges and rewards, and change was certain. Who remembers pads of 14-column paper?

Q: Has your career trajectory been different from how you first imagined it?
A: My career path was different than I expected. Initially, I thought I would work for the government for a few years and then transfer to a private company, accounting firm or operate my own business. But I find the work challenging and rewarding knowing that I am involved in providing an important public service.

Q: What advice would you give to students who might want to pursue an accounting career but are undecided?
A: I would encourage the students to explore the various areas within the accounting profession and talk to practitioners. There are opportunities to work in a wide variety of industries and businesses, and the knowledge, experience and analytical skills learned can lead to opportunities in other fields. The work can be rewarding and challenging, and you can make a difference. There is certainly more to an accounting career than being a “bean counter.”

Q: How do you think the recent accounting scandals have affected the public’s perception of the profession?
A: The public has relied upon CPAs to provide honest and quality services and will continue to do so. Most CPAs have lived up to that expectation and acted ethically and adhered to the standards in completing their work. However, a few have not, and it makes the headlines. While the public understands that management has primary responsibility for the Enron-like corporate scandals or the Roslyn School District scandal, they still ask, “Why didn’t the auditors catch it?” This same question has been asked since the savings and loans scandals in the 1970s. Legislation and auditing standards have been tightened to help ensure auditor independence and address detection of fraud and abuse. The public sees this as a step in the right direction. However, they still expect auditors to find fraud as part of their audit. Auditors need to get better at exercising professional skepticism, considering the potential of management override of controls, understanding techniques for identifying fraud, and educating the public on what CPAs do.

Q: What are the pros and cons of working in industry as opposed to an accounting firm?
A: There are many pros and cons, but it comes down to an individual’s preferences.Whether it be an industry or an accounting firm, CPAs and accountants are called on to use their knowledge, skills and professional judgment in a variety of industries or service sectors. Some individuals working for a small to medium size accounting firm may get great satisfaction out of helping new start-up companies, while other individuals may get satisfaction out of working for a government or nonprofit entity, knowing that in some way they are helping provide critical services. Whether in an accounting firm or industry, CPAs are provided with the opportunity to learn and grow professionally and provide a needed service.

Q: What do you enjoy most about your current position?
A: I especially enjoy the interaction with individuals in the education community. Whether it be a teacher, principal, business official, superintendent, a board member, SED or OSC employee, or the school district’s CPA, we all have a common goal of ensuring all children receive the educational services they need to become productive members of society, and do so in an efficient and effective manner.

Q: What hobbies do you enjoy outside of work?
A: I enjoy spending time with my family. We especially like outdoor activities—skiing, skating, swimming, camping and hiking. We also like to travel and visit historical and interesting places.

Q: Tell me about your committee work with the Society. When did you get involved? Do you think it’s an important networking step?
A: I first got involved with the (Public Schools) Committee in 2000, at about the time my office took over responsibility for reviewing financial statements for school districts and BOCES. The committee meetings provided me with an opportunity to work firsthand and network with many of the school districts’ independent auditors, school district and BOCES business officials, staff from the Association of School Business Officials (ASBO), and representatives of the Office of the State Comptroller (OSC), and other staff from SED. I found the committee to be a hardworking group with individuals who are concerned about doing the right thing. There is also a sense of family, with everyone willing to help each other.