Home' A Plus Magazine : January 2017 Contents (Source: IESBA’s At A Glance in July 2016)
While the new standard has merits,
there may be challenges in application.
The response framework requires
auditors and senior-level PAIBs to
determine whether further action
is needed in the public interest by
considering various factors set out in
the standard. Professional judgment
is therefore required to make such
a decision based on the facts and
circumstances pertaining to the cases.
In most circumstances, such decision
would not be easy and straightforward
as it involves both professional conduct
and legal considerations.
Professional accountants are advised
to consult internally and/or seek
external legal or other professional
advice if in doubt.
The Institute has a complaint mechanism in
which professional accountants can lodge
complaints concerning the ethical and
professional conduct of Institute members
and member practices. For any suspected
fraud, unlawful acts and malpractices
concerning a client or employer, they
should consider reporting to the relevant
The Institute’s new and major standards
resource centre contains relevant guid-
ance and materials for implementing the
new ethical standard. Also, more Institute
seminars will be held soon. Contact the
Institute’s Standard Setting Department
(firstname.lastname@example.org) if you have
any questions on the new standard or any
responses to NOCLAR.
This article is
contributed by the
What is required of other professional accountants in public practice and other PAIBs?
Professional accountants in public practice other than
Discuss with management and, where appropriate,
those charged with governance.
If the client is also an audit client or a component of an
audit client of the firm, communicate the matter within
If the client is an audit client or a component of an
audit client of a network firm, consider communicating
the matter to the network firm.
For any other client, consider communicating the
matter to the firm that is the external auditor.
Consider whether further action is needed in the
Courses of further action may include:
Disclosing the matter to an appropriate authority even
if not required by law.
Withdrawing from the engagement and client
The nature and extent of further action will depend on
Escalate the identified or suspected NOCLAR to the
immediate superior or next higher level of authority; or
Use established internal whistleblowing mechanism.
Documentation is encouraged for both professional
accountants in public practice other than auditors, and
January 2017 49
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