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Governor Announces Plan
to Combat Mortgage Foreclosure Epidemic
According to Michigan's banking data, foreclosures in the state have nearly
doubled since 2006, bourgeoning from just over 42,000 to a projected 83,000
foreclosures by the end of 2007. The foreclosure rate in Detroit is the
highest in the nation, and 62 percent of the sub-prime loans have been made
to African American residents. In response, Gov. Jennifer Granholm recently
announced plans to
assist Michigan homeowners facing mortgage foreclosure by offering new
refinancing options to protect their home ownership. Two initiatives include
assisting homeowners who have an Adjustable Rate Mortgage refinance to a
lower-interest, fixed-rate loan; and assisting individuals who are
delinquent on their mortgage and risk losing their home. To qualify for
help, household income must be under $72,250, and the purchase price of the
home cannot exceed $216,750.
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2008 Adjustments Widen
Tax Brackets, Change Pension Limitations
For 2008, personal exemptions and standard
deductions will rise, tax brackets will widen and workers will be able to
save more for retirement, thanks to
inflation adjustments announced last week by the IRS. The IRS also
announced cost of living adjustments applicable to dollar limitations for
pension plans and other items for Tax Year 2008.
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PCAOB Identifies Audit Deficiencies of Firms Auditing
≤100 Public Companies
In a report issued today by the Public Company Accounting Oversight Board (PCAOB),
auditing or quality control
deficiencies were identified in 11 areas during inspections of firms
that audited 100 or fewer companies. The inspections took place in 2004
through 2006. The PCAOB provides summary information in this
report to assist audit firms in improving or maintaining the quality of
their work. In related news, the PCAOB last week approved amendments to
reduce the
inspection frequency for firms that do not regularly issue audit
reports.
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Guidance Issued on Auditing Internal Control in
Smaller Public Companies
The PCAOB recently published for public comment
staff guidance on auditing internal control over financial reporting in
smaller public companies. The guidance explains how auditors can apply the
Board's internal control auditing standard, Auditing Standard No. 5, An
Audit of Internal Control Over Financial Reporting that Is Integrated with
an Audit of Financial Statements, to audits of smaller, less complex public
companies. Interested parties are encouraged to provide comments, including
on additional auditing strategies that could be incorporated into the
guidance. Although auditors are expected to be able to benefit from this
guidance immediately, the comment period, which ends Dec. 17, 2007, may
provide the opportunity to improve the document before it is made final.
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Poker Tournament
Winnings Must be Reported to the IRS
Starting next year, casinos and other sponsors of poker tournaments will be
required to report most winnings to winners and the IRS. The
new requirement, which goes into effect on March 4, 2008, was contained
in guidance released Sept. 4 by the Treasury Department and the IRS. The
guidance is designed to clear up confusion about the tax reporting rules
that apply to poker tournaments. In recent years, some casinos and players
have been confused over whether poker tournament sponsors who hold the money
for participants in a poker tournament are required to report the winnings
to the IRS and withhold tax on the winnings.
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The Truth About Cell
Phones and the Do Not Call Registry
The
Federal Trade Commission reiterated that despite the claims made in
e-mails circulating on the Internet, consumers should not be concerned that
their cell phone numbers will be released to telemarketers in the near
future, and that it is not necessary to register cell phone numbers on the
National Do Not Call (DNC) Registry to be protected from most telemarketing
calls to cell phones.
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Digital 'Avatars' May
Stand in for You in Virtual Workplace
Cisco Systems, IBM, and Sun Microsystems are
among the businesses developing virtual workplaces to boost productivity and
enhance collaboration among employees in different offices. Experimental
software from Second Life and others allows companies to create virtual
workrooms for meetings, training sessions, product demonstrations, and
document collaboration. To read this
article in its entirety and much more about developments in technology,
access
Technology and Productivity Weekly, the MACPA's electronic technology
newsletter for industry professionals, sponsored by Information, Inc.
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