F & F Associates, Chartered Accountants, are appointed as the statutory auditors of TQR Limited, an unlisted company, for the financial year…

Responding to Non-compliance with Laws and Regulations (NOCLAR) applicable to Professional Accountants in Service (i) NOCLAR, under Code of Ethics, is applicable on professional accountants in service, and in practice. Among those in practice, it applies to Auditors, as well as professional services other than audit. It is applicable to Senior Professional Accountants in service, being employees of listed entities. Senior professional accountants in service ("senior professional accountants”) includes directors. In the given case, TQR Limited is an unlisted company, consequently, the provision of section 260 of NOCLAR is not applicable to Mr. X who is a senior-most director of the company and a Chartered Accountant. Thus, contention of the Mr. X that there is no responsibility cast on him for responding to the non-compliance is correct. (ii) Documentation Requirements in NOCLAR to be prepared by CA F, regarding non-compliance observed, over and above the requirements under the applicable Standards on Auditing: How management / those charged with governance have responded to the matter. The course of action the accountant considered, the judgments made and the decisions that were taken, having regard to the reasonable and informed third party test. How the accountant is satisfied that the responsibility of public interest has been fulfilled.