Eddy Wymeersch

NOCLAR or How Accountants Deal with Suspected or Occurred Breaches of the Law

WP 2016-05

This paper gives an overview of the new international standard for accountants in case an accountant comes across or is informed that breaches of laws and regulations have been committed in the company he is auditing, or in which he is professionally involved. The standard mainly belongs to the International Code of Ethics, but is also dealt with in the International Standards on Auditing (ISA). It outlines the different steps the accountants should take, especially addressing the internal organisation of the company. If no result if obtained, he should determine whether, in the public interest, he should report to the authorities, taking into account a number of criteria. Documentation of these different steps is essential.