Nextcard, Inc

1233 WordsOct 21, 20135 Pages
Running Head: Nextcard Nextcard, Inc Background Nextcard, Inc was a model for successful people who were looking to the internet in the 1990’s as an enterprise. Nextcard was founded in 1996 in California as the first credit card company to issue cards online. Since the internet was still being introduced to households throughout the United States internet companies were still developing effective methods to reach potential customers. One of the driving factors behind Nextcard believing that it could succeed in the credit card industry was it believed that it could cut cost that tradition ‘brick and mortar’ credit card companies could not. During the 1990’s it was believed that the people…show more content…
But Ernst & Young were not ready to accept that they were in fact negligent in their opinion, so they were found to have doctored the work papers and the time stamps on to try and hide any form of liability by one of their own auditors, Oliver Flanagan (Michael Liedtke, 2002). It’s likely that Ernst & Young may have gotten away with this if it had not been for one of their own auditors who saved the edits and turned them over to the authorities. However, I would like to point out that Oliver may not have truly been a hero, but someone just doing some CYA without trying to ruffle anyone’s feathers. You see, when he was asked to alter the work papers, he didn’t immediately notify his work hotline or outright deny this request. Instead, Oliver did what he was told and saved a copy just in case it would be needed later on. It became apparent that he did not offer this information until the investigation was already underway and there would have been a chance that he would have been caught. Oliver should have refused to adhere to this request and then ran the action up the flag pole. And if Oliver did not have the internal fortitude to do the right thing face to face, he at the very least should have notified the work abuse hotline, the AICPA hotline or even the regulatory agency. This would have allowed to him to keep the information as confidential as possible. Financial Fallout Once all of this had been brought to light,

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