Do you know the best ways you as an investor can get cheated?

Assets in Section 529 college savings plans rose to an estimated $55.4 billion at the end of the first quarter, according to data released by the nonprofit College Savings Foundation. The quarterly asset total was up 6 percent from an estimated $52.3 billion at the end of 2004, and up 38.6 percent from the first quarter 2004 total of $40.0 billion.

Chief financial officers' optimism about the economy and their own companies' prospects is the lowest it has been during the past 12 months, according to a survey of Financial Executives International members.

Better than one in every eight U.S. corporations that have undergone the more rigorous audits mandated by the Sarbanes-Oxley Act during the past year have been flagged for ineffective internal controls over their financial reporting, officials at the Public Company Accounting Oversight Board disclosed during a recent meeting with the organization's Standing Advisory Group.

Since Sarbanes-Oxley regulations went into effect for large enterprises, holding executives accountable for their company's financial records, the spotlight has been slowly turning towards nonprofits.

The Financial Accounting Standards Board has taken a long look at an international standard on accounting changes, found it better than the American standard, and promptly adopted the gist of the international position.

Some taxpayers apparently believe that the ability to claim a charitable deduction for donation of an automobile ended on Dec. 31, 2004. The advertisements on the radio would make one believe that nothing has changed, and that you can still claim a deduction for donated automobiles just as before Jan. 1.

One of contemporary accounting's most persistent issues has taken a turn toward resolution as the American Institute of CPAs and the Financial Accounting Standards Board agreed to consider creating some kind of generally accepted accounting principles for privately held, for-profit companies.

Every so often, people and organizations mistakenly become so self-satisfied that they stumble into assuming their own infallibility, often accompanied by smug statements. Inevitably, events turn these boasts to dust.

An online filing error has revealed that the Public Company Accounting Oversight Board authorized a probe into a 2003 audit performed by Big Four accounting firm Deloitte & Touche LLP.

The U.S. Chamber of Commerce filed paperwork last Thursday to again challenge a U.S. Securities and Exchange Commission rule requiring that a mutual fund's chairman and three quarters of its directors be independent of the company.

A top litigation counsel for the Securities and Exchange Commission will step down in August to become head of regulatory affairs for Merrill Lynch in New York.

The Public Company Accounting Oversight Board will host a forum in early August, "Auditing in the Small Business Environment," in Orlando, Fla., designed for registered accounting firms and public companies working in the small business community.

The International Auditing and Assurance Standards Board, a unit of the International Federation of Accountants, has released ISRE 2410, a standard to assist auditors in reviewing interim financial statements.

Former Securities and Exchange Commission Chairman Arthur Levitt has been named as a special advisor to insurer and financial services provider American International Group Inc.

Big Four firm PricewaterhouseCoopers has named Rob Ward to head its global assurance practice -- the company's largest line of service. Ward had previously served as deputy global assurance leader and will succeed Gerald Ward (no relation), who is retiring after more than 30 years of service.Ward, 51, will oversee 5,000 partners and approximately 55,000 employees for the business line, which had revenues of $8.7 billion for the 2004 fiscal year. Before joining the Global Assurance Group, he had been the national managing partner of PwC Australia."Rob Ward will lead PwC's assurance business at a dynamic time for our firm and the profession," said Samuel A. DiPiazza, chief executive of PwC, in a statement. He added, "The breadth and depth of his experience with major clients make him uniquely qualified to lead during this period of growth and change."A graduate of the University of New South Wales and a chartered accountant, Ward joined PricewaterhouseCoopers in 1974. He has been extensively involved in the development of global audit methodology and the application of computer technology. Additionally, he served as president of the Institute of Chartered Accountants in Australia, national executive of the Institute of Chartered Accountants in Australia, and chairman of the Australian Accounting Research Foundation. In January 2005, Ward was awarded and admitted as a Member of the Order of Australia for his contribution to the accounting profession and the community.

Barely a week after a federal jury found HealthSouth founder Richard Scrushy not guilty of participating in a massive accounting fraud, the Securities and Exchange Commission is preparing civil charges against the former chief executive.Scrushy was the first CEO charged under the Sarbanes-Oxley Act and had faced 36 counts of fraud, false corporate reporting and making false statements to regulators after prosecutors said that he led a $2.7 billion earnings overstatement at the medical services company beginning in 1996.After a five-month trial and nearly another month of jury deliberations, he was acquitted on all counts.According to a report from The Washington Post, the SEC will file the formal paperwork on Thursday to retry Scrushy and seek $786 million in penalties and disgorgement. The HealthSouth founder would also not be allowed to serve as an officer or director at any public company if found guilty. Scrushy remains a member of HealthSouth's board of directors.In bringing a civil claim, the SEC most show "a preponderance of the evidence" that Scrushy was involved in and had knowledge of the fraud, a lower burden than the "reasonable doubt" standard required for a criminal conviction.Two other former executives, including HealthSouth's first finance chief, Aaron Beam, and former vice president Will Hicks, who both pleaded guilty and testified against Scrushy, are set for sentencing this summer. Another pair of indicted executives are awaiting trial in Alabama.

Senators Connie Mack and John Breaux, chairman and vice-chairman of the President's Advisory Panel on Federal Tax Reform, respectively, announced that the panel's 10th meeting will be held on Wednesday, July 20. The meeting will be held at the Renaissance Hotel here. The panel has held nine meetings in which witnesses testified about problems with the current tax system and various options for reform. At this meeting, panel members will discuss issues associated with reform, but there will not be any testimony presented. The President's Advisory Panel on Federal Tax Reform was established by President Bush in January and charged with recommending reforms to the tax code that would make the U.S. tax system simpler, fairer and more growth-oriented. The panel's final recommendations are due by Sept. 30, 2005.

The International Auditing and Assurance Standards Board, a unit of the International Federation of Accountants, is soliciting comments on a pair of exposure drafts designed to sharpen auditor reporting.Proposed International Standard on Auditing 701, The Independent Auditor's Report on Other Historical Financial Information, addresses auditors' reports for a variety of engagements, including reporting on a single financial statement, or a specific element of a financial statement.It also gives guidance on helping determine the acceptability of the financial reporting framework, and also examines relevant matters that an auditor must consider in forming an opinion on the financials.ISA 800, The Independent Auditor's Report on Summary Audited Financial Statements, recognizes that criteria for preparing and presenting summary financial statements may not exist. It also contains new standards and guidance on the criteria used and procedures performed in an engagement to report on summary financial statements.Comments on the exposure drafts are requested by Oct. 31, 2005. The exposure drafts may be viewed by going to www.ifac.org/EDs. Comments may be submitted by e-mail to EDComments@ifac.org.

American Express Financial Advisors Inc. will pay New Jersey $5 million and implement company-wide reforms to address allegations that it failed to reasonably supervise its financial advisors. The settlement follows revelations that a financial advisor in AEFA's Voorhees, N.J., office stole more than $400,000 from at least 22 clients. The New Jersey Bureau of Securities discovered the theft, and expanded its investigation with the uncovering of widespread problems involving AEFA's failure to supervise financial advisors within its franchise offices. "In investigating and prosecuting this individual, we identified a larger issue of inadequate supervision of the company's financial advisors," said New Jersey Attorney General Peter C. Harvey. "To its credit, American Express has worked cooperatively with our office to address deficiencies in its oversight of financial advisors." Harvey vowed to continue his scrutiny of financial advisory services. "We are taking a hard look at the industry," he added. "Where we find firms failing in this area and the failures are significant, we will be imposing major penalties and demanding significant reforms."