Krista Fiolleau, associate professor in the School of Accounting and Finance (SAF) has recently published a chapter titled “The professional responsibility of accountants as re-defined by the inclusion of the NOCLAR standard in the Code of Ethics” within the Research Handbook on Accounting Ethics alongside co-authors Pier-Luc Nappert from Université Laval and Linda Thorne from the Schulich School of Business. NOCLAR, an acronym meaning non-compliance with laws and regulations is discussed extensively throughout the chapter.
“This chapter is meant to provide professionals with an understanding of the new NOCLAR standard, which stipulates the professional accountant’s obligation when they encounter suspected non-compliance with laws and regulations,” Fiolleau said.
This chapter includes a discussion of the original Code of Ethics and the challenges that the original code posed in terms of the principle of confidentiality for those encountering fraud and illegal acts. The NOCLAR change to the Code of Ethics is discussed using a legal analysis, and the implications of this change and the ongoing challenges faced by the accounting profession after the NOCLAR standard’s adoption are discussed.