Audit & Accounting

My brother just retired from Cherry Hill, New Jersey, to Venice, Florida. "I used to be a doctor," he now says, and then turns to one of three books he will read in a week.

A new survey says that the average cost for the internal controls provisions of the Sarbanes-Oxley Act is $3.8 million, down 16.3 percent from last year and about halfway to the drop anticipated for the second year of compliance.

Personal bankruptcy filings dropped to their lowest level in 20 years during 2006's first quarter, according to financial research firm Lundquist Consulting Inc.

The Internal Revenue Service heard from a variety of groups on a proposed rule change that the agency says would strengthen taxpayer control over tax information in the hands of tax preparers or tax software companies.

In remarks to reporters after a speech in Washington, Securities and Exchange Commission Chairman Christopher Cox said that small companies aren't likely to receive any exemptions from the Sarbanes-Oxley Act.

Federal regulators released a consumer research study that offers suggestions for consumer-friendly financial privacy notices.

LEVEY FETED BY AICPA: The American Institute of CPAs named Steven I. Levey, CPA, PFS, the recipient of its 2005 Distinguished Service Award - the highest honor bestowed by the institute's Personal Financial Planning Division.The award is given annually to a CPA who most enhances the overall quality of personal financial planning. Levey, managing director at Denver-based GHP Horwath PC, was recognized for his contributions to the profession, including substantial volunteer efforts for the AICPA, chairing eight conferences, serving on the PFP Executive Committee and the Professional Liability Insurance Plan Committee, and his current post as a commissioner on the National Accreditation Commission.

As an asset class, real estate is growing in importance to professional advisors and their clients. Not only did the asset class provide high returns in the past few years, but managers kept improving the opportunities for investments. Enthusiasm seems to be growing for the class in general, and for new offerings in particular.The run-up in prices over the last few years grabbed headlines. But from the 30 percent average pace of recent times, advisors expect that performance will drop into a more reasonable range, perhaps in the high single digits.

Are your clients making the maximum allowable tax-deductible contribution to their defined-contribution plans (as much as $49,000 in 2006)? Would they be interested in contributing much more if possible? If the answer is "Yes," they should consider a cash balance plan.A CB plan is a qualified retirement plan established for the owner of a business and his employees. Tax-deductible contributions are made to the plan in the form of managed assets (stocks, bonds, mutual funds, variable annuities, etc.) with the option of purchasing life insurance inside the plan.

Three former KPMG auditors settled charges of improper professional conduct for failing to properly complete the audit of Tenet Healthcare Corp.'s 2002 financial statements and them making changes to try and conceal their work.