Non-compliance with laws and regulations
Non-compliance with laws and regulations, often abbreviated NOCLAR, refers to acts of omission or commission contrary to prevailing laws or regulations by the client or those working for it. The professional considers the facts, reporting responsibilities, ethics requirements and legal restrictions.
Worked example
An auditor discovers that the client may have breached environmental discharge rules and investigates the financial and reporting implications.
Common mistake
Do not assume every breach has the same reporting consequence or that confidentiality always prohibits disclosure.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |