The Public Company Accounting Oversight Board (PCAOB) has proposed a new auditing standard: Non-Compliance with Laws and Regulations (NOCLAR). Originally released for public comment on June 6, 2023, the proposed standard aims to enhance the responsibilities of auditors in identifying and responding to instances of NOCLAR.
The proposal is wide-ranging and, if adopted, would drastically change the current audit model and significantly expand auditor obligations. In this issue of Practical Compliance, we look at the proposed standard and current auditing standards and offer action steps for public companies as they prepare for the potential change.