Main Article Content
Abstract
This article clarifies and expands on the implications of the pronouncement: Non-Compliance of Laws and Regulations (NOCLAR), on Registered Auditors and Professional Accountants in South Africa. NOCLAR was introduced to assist legislative reporting obligations and strengthen professionalism and law coherency. The study clarifies the implications the IRBA and SAICA Codes of Professionals Conduct have on Accountants and Auditors and the course of action required if, all prior equivocal guidelines fail to address an illegality. Due to the relative infancy in the application of the NOCLAR amendment in South Africa, this study adopted a qualitative research methodology by critical review and analysis of commentaries, guidelines and application of the amendment by South African Accountants, Auditors and Academics. The study found that non-adherence to the amendment results in 3 key repercussions for both company and/or the Accountant and Auditor: Reputational damage, Loss of current clientele and future business opportunities and criminal charges.
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Article Details
References
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References
Adam, S., 2018. Accountancy SA. [Online]
Available at: https://www.accountancysa.org.za/analysis-6-mythbusters-on-noclar[Accessed 3 March 2018].
IESBA, 2016/2017. SAICA Student Handbook. In: S. E. Team, ed. Volume 2C: Lexis Nexis, p. 457.
IESBA, 2016/2017. SAICA Student Handbook. In: Volume 2B. Lexis Nexis, p. ET 116.
Davis, A., 2017. Changing The Landscape. Professional Ethics, July/August, pp. 24-25.
IESBA, 2016. Responding to Non-compliance with Laws and Regulations, s.l.: International Federation of Accountants.
Klonaridis, N., 2016. Responding to Non-Compliance or Suspected Non-Compliance with Laws and Regulations.
IAASB Main Agenda, pp. 19-20.
Lexis Nexis, 2016. Tech4Law. [Online]
Available at: https://www.tech4law.co.za/product-updates/84-legal-content/1178-non-compliance-comes-at-great-cost-to-sa-businesses
[Accessed 12 July 2018].
Pilling, D., 2017. Financial Times. [Online]
Available at: https://www.google.co.za/amp/s/amp.ft.com/content/c525699e-a6a5-11e7-ab55-27219df83c97
[Accessed 8 March 2018].
SAICA, 2017. SAICA. [Online]
[Accessed 3 March 2018].
SAICA, 2017. SAICA. [Online]
Available at: https://www.saica.co.za/Technical/Ethics/NOCLAR/tabid/3855/language/en-ZA/Default.aspx
[Accessed 7 March 2018].
Steenkamp, J., public draft. SAICA Communication.
Wymeersch, E., 2017. NOCLAR or How accountants deal with suspected or occurred breaches of the law. [Online]
Available at: https://ssrn.com/abstract=2845282
[Accessed 3 March 2018].