CAQ’s organizes sign-on letter addressing concerns regarding PCAOB’s Proposed Auditing Standard on NOCLAR
Jul 26, 2023
On July 26, 2023, the Center for Audit Quality (CAQ) published a “sign-on letter” addressing the concerns that audit committees have about the PCAOB’s proposed new auditing standard , AS 2405, A Company’s Noncompliance with Laws and Regulations, or “NOCLAR” for short. The CAQ will submit this sign-on letter, on behalf of audit committee members.
The CAQ believes that audit committee members should speak out on this topic to let the PCAOB know:
- Any change should keep the auditor focused on NOCLAR that could materially impact the financial statements, such as material penalties or loss contingencies.
- Any requirement of the auditor should be risk-based and consider the role the company’s compliance program plays in detecting NOCLAR that could be material to the audited financial statements.
Comments on the proposal are due by August 7, 2023.
Access the sign-on letter on CAQ’s website and the proposal on the PCAOB website.