Analysis of Nextcard.Inc

Nectar, Inc. Jeremy Lent lunched a company named Nectar. Inc. Aims to earn money by helping people get credit card more conveniently. But there is two huge flaws in this strategy, first, the way nectar to obtain new customers proved to be much higher than the figure Lent had originally projected. Second, the people who signed up for the Neckband credit card proved to be much higher credit risk than Lent had expected. So, the result is big bad debts. But the company officials still Insist that theIncreasing allowance for bad debts Is caused by hackers and other Internet miscreants. Then in late 2001, they got a large class-action lawsuit by the angry Investors. While the real big problem Is what the audit partner Thomas Trigger did. In order to make the workspaces appear as If the addling teams had been ‘right on the mark' all along, he modifying the workspaces and scour the evidences. Instead of scour the evidence, Trigger's subordinate gave It to federal authoresses. I think t he audit Issue we should concern about Is the destroying of documents.As It Is said In the paragraph, the financial markets depend on the integrity of auditors, lawyers and other professionals to do their jobs ethically and fairly. If they fail to do so, the damage is huge, and the mistake is unforgivable. But I didn't appreciate what Outrages subordinate did. He should at least persuade his superior not to do this. He pretend to be obey the boss's order while do another thing behind wisher's back is kind of betraying. On the other side, Trigger is incompetent to be a good mentor. He didn't teach his subordinate to be honest auditor.Whether the auditor should evaluate the soundness of a client's business model is depends on the position of the auditor. If the clients asked about the suggestions, they can give some advices. If they are not been asked to do, I think the business model is out of an auditor's obligations. Analysis of Nectar. Len By redeemed So, the result is big bad deb ts. But the company's officials still insist that the increasing allowance for bad debts is caused by hackers and other Internet investors. While the real big problem is what the audit partner Thomas Trigger did.In order to make the workspaces appear as if the auditing teams had been ‘right on the mark all along, he modifying the workspaces and scour the evidences. Instead of scour the evidence, Trigger's subordinate gave it to federal authorities. I think the audit issue we should concern about is the destroying of documents. As it is said in other professionals to do their Jobs ethically and fairly. If they fail to do so, the Trigger's subordinate did. He should at least persuade his superior not to do this. He didn't teach his subordinate to be honest auditor. Whether the auditor should