War against corruption gets boost with new ethical standards

Institute of Chartered Accountants of Nigeria (ICAN) has boosted the Federal Government’s fight against corrupt practices that have adversely affected the economy by announcing a new ethical standards called, ‘Non-Compliance with Laws and Regulations (NOCLAR).
NOCLAR, now a new section in the Code of Ethics for professional accountants, sets out a ‘first-of-its-kind framework’ to guide professional accountants in what actions to take in the public interest when they become aware of a potential illegal act committed by a client or employer.
According to Isma’ila Zakari, the 53rd president of ICAN, the standards apply to all categories of professional accountants, including auditors and others in the public and private practices, including those in the not-for-profit organisations.
Zakari, while briefing journalists at the weekend, said if fully applied, NOCLAR would further guide practitioners to exhibit high level of professionalism as well as boost government’s war against corruption.
“The benefit and importance of the code is that it would provide a clear pathway for auditors and other professional accountants to disclose potential non-compliance situations to appropriate public authorities in certain situations without being constrained by the ethical duty of confidentiality,” Zakari said.
He further observed that the dynamic nature of business environment in recent times had brought to the fore the need for professional accountants and regulatory bodies to exhibit high level of professionalism and due diligence in providing services to the public in the changing business environment.
“The era of poor financial reporting is over as corporate owners and other stakeholders now insists on having more reliable and credible financial reports from professional accountants and auditors,” he said.
The International Ethics Standard Board for Accountants (IESBA), a global body for accountancy profession, had from July 15, 2017, authorised a new standard for implementation after over six years of extensive consultation, based on a multi-sector approach and stringent due process.
The introduction of the New Ethical Standards on Non Compliance with Laws and Regulations (NOCLAR)
The global accountancy profession through the international ethics Standards Board for Accountants (IESBA) is an independent standard setting board that develops and issues in the public interest, high quality ethical standards and other pronouncements for professional accountants worldwide.
Through its activities the IESBA develops the code of ethics for professional accountants. The structure and processes that support the operations of the IESBA are facilitated by IFAC.

 

KELECHI EWUZIE