United States

Addressing noncompliance with laws and regulations


In July 2016, the International Ethics Standards Board for Accountants (IESBA) introduced new requirements to the Code of Ethics for Professional Accountants (the IESBA Code) addressing non-compliance with laws and regulations (NOCLAR), which becomes effective on July 15, 2017. In response to the new requirements addressing NOCLAR in the IESBA Code, the International Auditing and Assurance Standards Board recently issued International Standard on Auditing (ISA) 250 (Revised), Consideration of Laws and Regulations in an Audit of Financial Statements, and made limited amendments to international standards for other services. These amendments address actual or perceived inconsistencies in the scope of laws and regulations and the approach to identifying and dealing with NOCLAR. ISA 250 (Revised) becomes effective for audits of financial statements for periods beginning on or after December 15, 2017, and there is a similar effective date for the standards for other services.