Audit Conduct

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Disclosure of NOCLAR - What Whistleblower Protections Exist for CPAs?

This month, The CPA Journal published an article I co-wrote with attorney, David N. Mair, of Kaiser, Sauborn & Mair, P.C., about the proposed noncompliance with laws and regulations (NOCLAR) ethics standard in the US and whether federal and state whistleblower protections protect an accountant who discloses NOCLAR.

The article describes the NOCLAR standards in the International Code of Ethics for Professional Accountants, including International Independence Standards (the Code) and the AICPA's proposed NOCLAR standard. As for whistleblower protections, it describes the current state of laws protecting employees from retaliation by an employer afforded by the federal government and when disclosing illegal acts occurring in New York and New Jersey.

Four case studies illustrate the application of these laws to specific circumstances.