New exposure drafts (EDs) from two AICPA committees propose additional guidance on CPAs’ responsibilities related to noncompliance with laws and regulations (NOCLAR).
The AICPA Professional Ethics Executive Committee (PEEC) and the AICPA Auditing Standards Board (ASB) issued the exposure drafts Feb. 24.
PEEC’s ED is a reproposal of an ED issued March 10, 2017, as part of PEEC’s international convergence efforts. The original proposal intended to align PEEC’s standards with those of the International Ethics Standards Board for Accountants.
ASB’s ED proposes amending AU-C Section 210 in the AICPA Professional Standards to require a successor auditor, once management authorizes the predecessor auditor to respond to inquiries from the successor auditor, to inquire of the predecessor auditor regarding identified or suspected fraud and matters involving noncompliance with laws and regulations.
Comments on the EDs are due June 30. See more.