Both the AICPA’s Professional Ethics Executive Committee (PEEC) and Auditing Standards Board (ASB) have issued new requirements for CPAs regarding noncompliance with laws and regulations (NOCLAR) within the AICPA Code of Professional Conduct.
The new PEEC interpretations of the “Integrity and Objectivity Rule” are titled “Responding to Noncompliance with Laws and Regulations.” The NOCLAR interpretations set forth members' responsibilities when they encounter noncompliance with laws or regulations when working with a client or within their employing organization.
The interpretations define NOCLAR as acts of omission or commission, intentional or unintentional, that are contrary to prevailing laws and regulations and committed by a client or an employer, by those charged with governance, by management or by other individuals working for or under the direction of the client or the employer. Read more.