NOCLAR to protect public interest from potential illegal acts

Responding to Non-compliance with Laws and Regulations (NOCLAR) is an international ethics standard for auditors and other professional accountants.

It sets out a first-of-its-kind framework to guide professional accountants in what actions to take in the public interest when they become aware of a potential illegal act, known as non-compliance with laws and regulations, or NOCLAR committed by organizations.

Speakers forwarded these views at a webinar on ‘Responding to Non-Compliance with laws and regulations: Bangladesh Perspective’ organized by the Institute of Chartered Accountants of Bangladesh (ICAB) on Wednesday, ICAB said in a statement.

Commerce Ministry Senior Secretary Tapan Kanti Ghosh joined the programme as the chief guest while Business Initiative Leading Development (BUILD) Trustee Board Chairperson Nihad Kabir and South Asian Federation of Accountants (SAFA) Chairman of Committee on Ethics and Independence and Member Council of ICAB Sabbir Ahmed joined as panel speakers.

Tapan Kanti Ghosh said, the international financial system, business, trade and commerce are taking new shapes with the advent of ICT and its application in business has accompanied some new opportunities along with few challenges.

ICAB President Md Shahadat Hossain said that NOCLAR is an action compliance with the violation of a law or regulation that has a direct impact on financial statements.

When responding to non-compliance or suspected non-compliance with laws and regulations, an auditor should firstly raise the matter with the management and advise them to rectify, remediate or mitigate the consequences, stop the non-compliance, or report it to an appropriate authority, he added.