ICAEW SE · Chapter 8 · Question 15 of 18
The ICAEW Code of Ethics includes provisions on responding to non-compliance with laws and regulations (NOCLAR). What is the main purpose of these provisions?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To guide accountants on how to respond, in the public interest, when they become aware of actual or suspected breaches of laws and regulations by clients or employers
Explanation
The NOCLAR provisions set out how an accountant should respond when they encounter non-compliance or suspected non-compliance, including understanding the matter, discussing it with an appropriate level of management, and considering whether further action, such as disclosure to an appropriate authority, is needed in the public interest. Accountants are not expected to act as investigators or prosecutors. Clearly inconsequential matters are outside the scope of the provisions.
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