AICPA Issues Exposure Drafts Related to Fraud and Noncompliance With Laws and Regulations
AICPA Issues Exposure Drafts Related to Fraud and Noncompliance With Laws
February 26, 2021
The AICPA Auditing Standards Board has issued a proposed Statement on Auditing Standards (SAS), Inquiries of
the Predecessor Auditor Regarding Fraud and Noncompliance With Laws and
Regulations, which would require an “auditor, once management authorizes the
predecessor auditor to respond to inquiries from the auditor, to inquire of the
predecessor auditor regarding identified or suspected fraud or noncompliance with
laws or regulation.” Comments on the proposed SAS are due by June 30, 2021.
In addition, the AICPA’s Professional Ethics Executive Committee has
issued an exposure draft, Proposed Interpretations and Definition:
Responding to Noncompliance With Laws and Regulations, which would provide
guidance related to “encountering a NOCLAR [noncompliance with laws or regulations]
at a client or within the employing organization.” Comments on the exposure draft
are due by June 30, 2021.