The Pbs & J Accounting Scandal

2212 Words Apr 27th, 2016 9 Pages
CASE STUDY: THE PBS&J ACCOUNTING SCANDAL
Introduction
The Enron and WorldCom scandals were arguably the incidents that permanently changed the procedures for accounting controls. In response to these incidents, the Sarbanes-Oxley Act (SOX) of 2002 was passed. Once the knowledge of these scandals was made public, a number of subsequent accounting scandals were discovered in public companies such as Tyco International, HealthSouth, and American Insurance Group. In addition, a then-employee-owned company, Post, Buckley, Schuh & Jernigan, Inc. (dba PBS&J, now known as “Atkins North America, Inc.”), was also hit by a similar accounting scandal. Henceforth, a case study of PBS&J is presented where we will examine the fraudulent transactions that took place, the major players, GAAP violations, how the SOX should have been implemented, and other actions that could have been taken to prevent the scandal.
Background Information
PBS&J, an architectural/engineering firm headquartered in Tampa, Florida, was founded on February 29, 1960 by partners Howard Post, John Buckley, Robert Schuh, and Alex Jernigan to construct Miami Lakes, Florida’s first planned community. By the mid-1980s, PBS&J had branched offices into Tampa, Orlando, Jacksonville, and other major cities in Florida. PBS&J acquired firms from as far out of state as California and further doubled its profits in the 2000s under the leadership of then Chairman John B. Zumwalt III. The company was best known for its services to…
Open Document