Noncompliance with Laws and Regulations (NOCLAR) Ethical Prompts
Let’s hear it for NOCLAR
Noncompliance with laws and regulations (NOCLAR) is on the agendas of several standards-setting bodies these days, both in the United States and internationally. The AICPA Professional Ethics Executive Committee (PEEC) and Auditing Standards Board (ASB) are no exception and both executive bodies have exposure drafts out right now on this important topic.
Comments are due June 30 for both exposure drafts, so you still have time to send your thoughts on the proposals.
PEEC’s proposal includes new NOCLAR interpretations for members in business and members in public practice and amends several other ethics interpretations.
The ASB’s proposal narrowly amends AU-C section 210 in AICPA Professional Standards to require an auditor, once management approves it, to inquire about suspected fraud and matters involving NOCLAR. Each proposal has questions to guide the input PEEC and the ASB are looking for and the AICPA would love to hear your thoughts on this important topic.
Have you read the latest new ethics guidance?
PEEC issued a revised “Records Requests” interpretation (ET sec. 1.400.200) and the revisions will be effective July 31, 2021. The revisions clarify which records need to be provided, who needs to receive them and in what format.
There’s also a new “Staff Augmentation Arrangements” interpretation (ET sec. 1.275.007) and associated revised interpretations, which will all be effective November 30, 2021. This guidance covers ethical considerations for loaning staff to an attest client. It’s an important topic in the current environment.
Learn while you’re on the go
If you haven’t had a chance to check it out, now is a good time. In addition to member enrichment topics and our ongoing series that gives highlights of PEEC’s quarterly meetings, we have some exciting new series coming up!