Accounting Assignment: Nextcard Inc

Read the case study titled Nextcard, Inc. Write a four to five (4-5) page paper in which you:

1. Given PCAOB oversight of accounting firms and the AICPA Code of Conduct, discuss whether or not you believe that public accounting firms can successfully manipulate audit work papers and records of clients engaged in fraudulent activity.

2. Analyze the fraud risk factors presented during the 2000 Nextcard audit and how each should have impacted the audit procedures.

3. In the Nextcard case, discuss how Ernst Young motivation to destroy the audit work papers reconciles with its obligation to provide assurances to financial investors.

4. Assume the role of Oliver Flanagan in the case. Identify the actions you would have taken when Robert Trauger asked you to help him alter the 2000 Nextcard audit work papers. In answering this question, discuss alternative courses of action available to you.

5. Search the Internet for a public accounting firm that recently destroyed audit evidence related to a client. Identify the public accounting firm and evaluate the punishment that the firm received for the Professional Code of Conduct violation. Evaluate the severity of the punishment to determine whether you agree or disagree with the severity.