Audit

Generation X millionaires give nearly twice as much to charity on average compared to older generations, according to a new survey.

Joseph P. "Bo" Fitzpatrick has left his position running AuditWatch to join CPA firm Watkins, Meegan, Drury & Co. as director of business development and strategic planning.

Investment research firm Glass Lewis has named former Comptroller General Charles A. Bowsher as chairman of its advisory council.

For months, leaders in the accounting profession have been demanding that the Securities and Exchange Commission give them a "date certain" for the transition to International Financial Reporting Standards, and now they have it, though the date looks more than a little uncertain.

Corporate tax executives need to closely watch other countries' transition to International Financial Reporting Standards as it could affect their global tax planning, warns a report issued by Deloitte.

Deloitte & Touche plans to cut about 900 employees from its offices in the U.S. to adjust to the slowing economy.

An appeals court has affirmed the dismissal of indictments against 13 former KPMG partners and employees in a tax fraud case involving tax shelters set up by the firm for clients.

Howard Hook, CPA, CFP, is a retirement distribution planning expert with Access Wealth Planning. the wealth management firm with offices in Roseland and Princeton, New Jersey. He maintains that with the coming shift from employment to retirement, many Baby Boomers will be on their own when it comes to making decisions that could have a major effect on their retirement lifestyles. He points out that in talking to a goodly number of clients who are happily retired as well as counseling those who are thinking about packing it in, he has found that those who have worked through three specific issues prior to departing their full-time jobs have achieved the most post-retirement satisfaction. So, what are the three things to think about before you hand in your retirement paper? First of all, do you know how you are going to pay your bills when you are no longer receiving a salary? It seems rather obvious on the surface, but Hook says that many people kind of ignore the matter of how much income will actually be needed without that salary. In other words, it’s not as obvious as it sounds. He suggests that people should prepare a detailed list of exactly the expenses that are being paid and then a separate column on how much income is being received. He cautions that all expenses should be included. For example, consider income taxes. That’s going to come out of your revenue base; the employer is no longer paying or deducting it from your paycheck. And consider medical insurance. Who’s paying for that and what’s it cost? Hook points out that all income must be listed. For instance, consider Social Security. He says that many people don’t realize that a portion of Social Security is subject to federal income tax and that a spouse who is still working can cause up to 85 percent of the retired spouse’s Social Security income to be subject to income tax. Next, go back to those medical expenses. How you going to pay for them? Upon retirement, decisions and responsibilities will fall on the retiree. A break in coverage could result in extended waiting periods for those with certain pre-existing conditions. You don’t want coverage to lapse even for a moment. One has to consider when Medicare comes into play or if not, what are the options? Also, what about COBRA which requires most employers who offer group health plans to provide temporary continuation of such coverage to employees who do qualify? And what about a spouse’s medical plan at their place of employment for the retiring spouse? Each medical plan has unique advantages and disadvantages. In fact, some plans require a supplemental drug plan to be purchased to cover prescription medication, while other plans include drug coverage. And again, watch those waiting periods carefully! Finally, and perhaps most importantly, how are you going to spend your free time? All this free time certainly changes the parameters of your life. With people living longer, the average retiree could live upwards of 25 years or longer. Do you have a game plan? Keep in mind that in many instances more free time can also lead to increased spending. Having a plan for keeping busy, says Hook, can help ensure a smooth transition and ease the difficulty of managing large blocks of free time. He says that the idea is not to take out a calendar and full out each day with a different planned activity but rather to make a list of the things you would like to do and an approximate time frame for doing them. Naturally, Hook says that answers to these questions may differ because people are different. The key, he concludes, is to make appropriate decisions now that will allow you the flexibility to adjust those decisions in the future without compromising your lifestyle. Howard Hook can be reached at hhook@awplan.com.

The Center for Audit Quality has sent a letter to the Treasury Department's Advisory Committee on the Auditing Profession warning that it has not taken sufficient steps to safeguard against the risk of "catastrophic litigation" to auditors.

BDO Seidman has elected Jack Weisbaum to his second four-year term as the accounting firm's CEO.

The Securities and Exchange Commission has approved a new rule and amendment to an existing rule from the Public Company Accounting Oversight Board related to ethics, independence and the provision of tax services.

Members of the Public Company Accounting Oversight Board may be breathing a sigh of relief that their organization has been ruled constitutional, but their opponents could decide to take their case to the Supreme Court.

The Securities and Exchange Commission proposed setting a roadmap for transitioning to International Financial Reporting Standards by 2014.

The Public Company Accountability Oversight Board hailed a decision by an appeals court that upheld its constitutionality.

AccuFund has enhanced its AccuFund Accounting Suite with point-of-sale and electronic funds transfer features.

According to recent surveys, Americans are lacking in preparation for retirement. In fact, many have little or absolutely no idea of how to achieve certain goals. To the rescue comes WealthRidge which is offering a free retirement planning White Paper to help people get on track to financial well-being in retirement. "Facts You Need To Know About Retirement Planning" can be obtained via www.wealthridge.com. Wealthridge points out that more than 65 percent of all retirees have saved less than $100,000, and they find that is nowhere near enough money for retirement. Michael Snowdon, CFP®, financial planning partner in WealthRidge says, "It's not uncommon to live in retirement for 20 or 30 years. Finding the funding to support those years has become, for many, an exercise in futility." Why? Here's an example he cites. An individual who wants to have an income of $75,000 per year in retirement, plans to retire in 15 years, and to live for 30 more years, may need as much as $2 million to fund the desired retirement income. How so? Because health care expenses represent a significant factor. A recent study suggests that a couple who reaches age 65 will need more than $200,000 to pay for their retirement health care expenses. With fewer company pensions, and living expenses at all-time highs, saving enough money for retirement can seem to be an almost impossible task. There are solutions, notes Wealthridge, and people can achieve their goals. They say that the retirement planning White Paper provides answers to how much money will be needed for retirement, how much healthcare will cost, and how much retirees can safely withdraw from their retirement portfolio to make sure it lasts as long as they do. The White Paper also identifies the tools that are available to save for retirement, along with some cautions about what not to do. For additional information, feel free to contact Michael Snowdon at (888) 326-5557. WealthRidge is an independent fee-based financial planning firm in the Denver metro area.

The New York State Society of CPAs plans to welcome a series of speakers from the Public Company Accounting Oversight Board to its September 10 conference on current developments under Sarbanes-Oxley.

The Financial Accounting Standards Board has added the topic of business combinations to its accounting standards codification, which aims to organize the thousands of U.S. accounting pronouncements issued by multiple standard-setters into a single authoritative source.

The Securities and Exchange Commission is soliciting comments on a new auditing standard for evaluating the consistency of financial statements.

SEC Chairman Christopher Cox hailed an appeals court decision that said the Public Company Accounting Oversight Board is constitutional.