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2 pages/≈550 words
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APA
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Literature & Language
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Article
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English (U.S.)
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Topic:

Anderson Implosion over Enron: An Analysis of the Contagion Effect on Fortune 500 Firms

Article Instructions:

This is what I need please !!!!
This assignment provides you with an opportunity to explore the critical practices of accounting and finance within business, and you are asked to do so in the form of an article review. The title of one article has been provided below, and this article will be the basis for your article review. Locate it within the online library by following the steps below: 
1. Click here to open the online library. 2. Locate and click on the database titled ABI/Inform Complete. 3. Then, search for the article by typing the following title into the search field (you must include the quotation marks): “Andersen implosion over Enron: an analysis of the contagion effect on Fortune 500 firms”. 4. Finally, locate and click on the link labeled Full text. 
After reading the article, draft a two-page paper by explaining what you learned about accounting and finance. You can include any reflections related to the article; however, address in paragraph form at least the following in your two-page paper:  What specific actions (or lack of) led to Enron’s bankruptcy?  What types of fundamental accounting and auditing practices eventually contributed to the fraud performed by Enron?  Briefly describe the ethical environment that led to the fraud.  How did Enron’s bankruptcy impact the financial markets for Enron’s competitors?  Briefly describe what you learned about the importance of the auditing process. 
Click here to download a template for this assignment. In APA Style, the template includes a title page and reference page. 
The purpose of this assignment is for you to explore the critical practices of accounting and finance within the industry, while also demonstrating information literacy by utilizing the online library.

Article Sample Content Preview:

Anderson Implosion over Enron: An Analysis of the Contagion Effect on Fortune 500 Firms
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Enron’s bankruptcy resulted from misstatement of the company’s accounts especially the debt level at appeared it was doing better financially, which was not the case (Chandra, 2003). The accounting system in place allowed the company hid the debt levels/ losses off books while relying on aggressive earnings management strategies, and made it appear as though the company could meet the debt obligation. This allowed the company to access capital from various sources because of a positive credit rating. However, the discovery that the accounts had been manipulated resulted in the company’s stock crushing and losing a lot of value before finally declaring bankruptcy. Since Enron failed to disclose it had accumulated losses, the debt levels became overwhelming and unsustainable.
Enron estimated the fair value of assets well beyond what is realistic as the aggressive earnings management strategies allowed the company to report higher earnings to hide losses. Anderson the company’s auditor did offer some consulting services to the company causing conflict of interest. The manipulation of accounts at Enron went on for years even after the company began making losses in some of its venture (Cross & Kunkel, 2012). The fraudulent activities were undertaken to influence the company’s stock, and the behavior of the senior management some who cashed in before the stock collapse, indicated that they knew that the company as in a financial distress.
The management at Enron focused on improving the financial position of the company at whatever cost. The gas industry was largely regulated, and the management made various deals, with the employees being encouraged to make risks. In cases where there were unethical violations, the management did nothing so long as it was associated with higher profits (Chandra, 2003). Additionally...
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