PCAOB NOCLAR - Non-compliance with Laws and Regulations
On June 3rd, the PCAOB Board introduced a comprehensive proposal, PCAOB Release No. 2023-003, outlining new auditing standards. These proposed standards mandate auditors to consider a company's compliance with laws and regulations while conducting audits.
The proposal, known as "Responding to Noncompliance With Laws and Regulations" (NOCLAR), entails significant revisions and amendments to current auditing standards. Its primary aim is to identify laws and regulations that, if disregarded, could have a substantial impact on a company's financial statements during the audit process.
Under the NOCLAR proposal, auditors will be required to gain a deep understanding of a company's operations, including the legal and regulatory landscape, as well as management's processes related to identifying laws and regulations that could significantly affect the financial statements.
This event will shed light on the major changes to the PCAOB AS requirements triggered by the NOCLAR proposal. It will also provide participants with an overview of the NOCLAR framework. The primary focus of this one-hour morning CPE training event will be on educating CPA firm staff members responsible for ethics and client management. However, CPAs working outside of assurance services will also be informed of their new responsibilities.
Attendees in this PCAOB auditing standard CPE event will earn 1 CPE Hour (YB) upon completion of the event, and a certificate of completion will be issued.
Don't miss this opportunity to enhance your understanding of PCAOB's NOCLAR requirements and how to refine your audit practice to meet these regulations. Register now to equip yourself with the necessary skills for successful external auditing in the dynamic regulatory landscape.
Details on Event Presentation
Offered every six weeks on Tuesdays at 1:00 p.m. to 2:00 p.m. Central Time in one CPE-Credit event.
We can schedule private events on your timetable for two or more attendees.
NASBA Program Disclosure
Program Level of Understanding: Basic
Prerequisites: None
Advance Preparation: None
Delivery Format: Group Internet Based
NASBA Field(s) of Study: Ethics
CPE Credits: 1, based on 50 minutes of instruction per hourCPE Event Highlights
The CPE event reviews and answers the following questions:
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What is NOCLAR?
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What are the recommended action items?
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What are the PCAOB registered firm's responsiblities?
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Learning Objectives
Improve the exteranl auditor’s efficiency and effectiveness by:
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Understanding basics on the PCAOB’s NOCLAR standard
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Discussing the ethical framework the registered firm is called to operate within by the PCAOB
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Look the decision-making process covering knowledge of violation of laws and regulations
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Key Issues on the Agenda
Introductions
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Who are you?
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Learning Objectives
Section 1 - Definitions and Concept
- PCAOB
- IESBA
- International Code of Ethics
- PCAOB Non-complaince with Laws and Regulations - NOCLAR
- Scope of Changes to the PCAOB Auditing Standards for NOCLAR
- PCAOB and IESBA Objectives
Section 2 - PCAOB NOCLAR Framework and Its Variations
- Act within the Public Interest
- Taking Action Using Professional Judgment
- NOCLAR Framework - Four Variations
- Overall Approach
- Five Steps to the Framework
- External Auditor Obligations
- Other CPAs in Public Practice
- Senior CPAs in Business
- Other CPAs in Business
- Considerations for Disclosure
Section 3 - Going Forward
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Summary of the Subject Matter
The CPE event focusing on PCAOB NOCLAR (Non-compliance with Laws and Regulations) is a crucial resource for professionals seeking to gain a comprehensive understanding of the regulatory landscape surrounding non-compliance issues within the purview of the Public Company Accounting Oversight Board (PCAOB). This event is designed to provide practitioners with insights into the complexities of identifying, addressing, and reporting instances of non-compliance with laws and regulations, fostering a culture of ethical conduct and accountability within the accounting and auditing profession.
Key areas addressed in this event may include:
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Regulatory Framework and Reporting Obligations: An in-depth exploration of the regulatory framework governing NOCLAR, shedding light on the reporting and disclosure requirements for instances of non-compliance with laws and regulations encountered during the course of professional engagements.
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Ethical Considerations and Professional Obligations: Insights into the ethical considerations and professional obligations underpinning the identification and handling of NOCLAR, emphasizing the need for ethical decision-making and adherence to prescribed reporting protocols.
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Risk Assessment and Detection Methodologies: Guidance on risk assessment methodologies and detection techniques for identifying potential instances of NOCLAR, ensuring proactive measures are in place to address and rectify non-compliance issues.
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Whistleblowing and Organizational Protocols: Discussions on whistleblowing mechanisms and internal protocols aimed at facilitating the reporting and resolution of NOCLAR instances within organizational settings, fostering a culture of transparency and accountability.
By addressing these critical elements, the CPE event seeks to empower professionals with the knowledge and tools necessary to navigate the intricate landscape of NOCLAR, ultimately contributing to the upholding of ethical standards, the preservation of public trust, and the promotion of integrity within the profession.
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Authoritative Sources
In the spirit of continuous growth and bearing the torch of learning beyond the confines of any single event, CCS likes to share with you a collection of authoritative resources. These are wellsprings of wisdom, where you can drink deeply from the fount of knowledge, expanding your understanding and enriching your professional practice.
Public Company Accounting Oversight Board (PCAOB)
PCAOB Standards and Guidance Dive into the heart of standards and guidance directly from the source. The PCAOB offers an extensive library of materials that shed light on the intricacies of NOCLAR and beyond.
American Institute of Certified Public Accountants (AICPA)
Professional Ethics Division The AICPA's Professional Ethics Division provides insights and guidance on navigating ethical dilemmas, including those related to NOCLAR. Their resources are a beacon for accountants in pursuit of ethical excellence.
International Ethics Standards Board for Accountants (IESBA)
NOCLAR – Non-Compliance With Laws and Regulations IESBA’s NOCLAR standard offers a global perspective on dealing with and reporting non-compliance with laws and regulations, offering a rich tapestry of ethical considerations.
The Institute of Internal Auditors (IIA)
International Professional Practices Framework (IPPF) The IIA’s IPPF provides essential guidance for internal auditors, including aspects relevant to detecting and responding to NOCLAR within organizations.
- IIA IPPF
National Association of State Boards of Accountancy (NASBA)
Continuing Professional Education (CPE) and Ethics For those seeking to delve deeper into the world of CPE and ethics, NASBA offers resources and guidelines that align with ongoing professional development and ethical standards.
In the garden of your professional journey, may these resources serve as both sunlight and rain, nurturing your growth and guiding your path towards ethical clarity and integrity. Remember, the pursuit of knowledge is a voyage not taken alone but as part of a community dedicated to elevating the standards of our profession. Let us walk this path together, with heads held high and hearts committed to making a difference.