NVIDIA Corp. (ticker = NVDA) Client Acceptance Study

Introduction:

Assume that you are a new partner at a large audit firm, which is looking to expand its client base. The firm is evaluating your performance based in part on your ability to find new audit clients, particularly those that appear to be in the growth sector. The firm is looking to expand into high-tech industries, but is wary of adding very risky clients to its audit portfolio. You heard the news that NVIDIA, one of the major graphics processor manufacturers in the world, has a good potential to grow in the high-tech sector. You also read a business article that the GPU industry has a solid prospect, with an increased demand for gaming devices and various alternative currency mining operations. You decide to check into the companys operations. NVIDIAs annual report paints a very positive picture of the companys prospects, and you think that this company may be a good opportunity for your firm. You mention the idea to the managing partner (a.k.a. CEO), and he/she asks you to perform a feasibility study of the NVIDIA account. Based on your recommendations, the firm will decide if it wants to commit the resources to go after NVIDIA.

Required:

4. Conclusion. Finally, make a determination of whether you should pursue NVIDIA as an audit client (when making your recommendation, you may want to assess whether there is the potential to provide other services in addition to audit service).