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IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Ken Siong, Technical Director, International Ethics Standards Board for Accountants.

Published in: Business


  1. 1. Page 1 | Proprietary and Copyrighted Information NOCLAR Ken Siong, IESBA Technical Director World Bank CFRR – IFAC Regional SMP Forum, Vienna 31 May 2017
  2. 2. Page 2 | Proprietary and Copyrighted Information At his best, man is the noblest of all animals; separated from law and justice he is the worst. – Aristotle
  3. 3. Page 3 | Proprietary and Copyrighted Information IESBA’s NOCLAR Standard • Major contribution to public interest – Coming into effect 15 July 2017 • Provides a framework to guide professional accountants (PAs) in deciding how best to act in the public interest when they become aware of NOCLAR or suspected NOCLAR
  4. 4. Page 4 | Proprietary and Copyrighted Information Objectives – All PAs NOCLAR Response Framework • Comply with fundamental principles of integrity and professional behavior • Through alerting management/ TCWG, seek to: – Enable them rectify, remediate or mitigate consequences of NOCLAR; or – Deter commission of NOCLAR • Take such further action as may be appropriate in public interest Deter- rence Miti- gation Reme- diation
  5. 5. Page 5 | Proprietary and Copyrighted Information Scope of Laws and Regulations Covered – All PAs • Laws and regulations with direct effect on material amounts/disclosures in the financial statements • Other laws and regulations that may be fundamental to entity’s business and operations • E.g. laws and regulations dealing with: – Fraud, Bribery and Corruption │ Money Laundering │ Terrorist Financing │ Financial Products and Services │ Taxation │ Data Protection │ Environmental Protection │ Public Health and Safety NOCLAR Response Framework
  6. 6. Page 6 | Proprietary and Copyrighted Information Who Does It Apply To & Framework Expectations? Auditors Non- auditors “Senior” PAIBs Other PAIBs NOCLAR Response Framework
  7. 7. Page 7 | Proprietary and Copyrighted Information Auditors – Taking Action • Establish what legal or regulatory obligations are triggered, if any, and comply with them • Raise the matter with management/TCWG and assess their response • Comply with professional standards • Determine whether to take further action – Courses of further action include disclosure to appropriate authority and withdrawal from engagement and client relationship • Professional judgment essential NOCLAR Response Framework
  8. 8. Page 8 | Proprietary and Copyrighted Information Key Desired Outcomes Protecting and promoting the public interest Stimulating greater accountability within organizations Protecting and strengthening reputation of the profession
  9. 9. Page 9 | Proprietary and Copyrighted Information • IFAC member organizations • Governments, legislators, regulators • Those charged with governance • National standard setters • Firms • Regional and international organizations • Academic institutions Other Players Have Crucial Role
  10. 10. Page 10 | Proprietary and Copyrighted Information • Resources available on IESBA website – Fact Sheet – Basis for Conclusions – Video Q&A series and FAQs – PowerPoint slides – Other implementation support tools and resources Implementation Support
  11. 11. The Ethics Board