In line with the opening statement in the SAICA Code, namely “A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest”, these provisions give recognition that in the appropriate circumstances further action may be required in the public interest in responding to NOCLAR. The requirements clarify that turning a blind eye to potential NOCLAR is not an appropriate response from SAICA members and associates, while placing renewed emphasis on the roles of management and those charged with governance (TCWG) of organisations who have the primary responsibility to ensure that business is conducted in compliance with relevant laws and regulations.
The objectives of the CA(SA) or SAICA associate are to comply with the fundamental principles of integrity and professional behaviour by alerting management and, where applicable, TCWG about the matter to seek to enable them to take appropriate action to rectify, remediate or mitigate the consequences of the identified or suspected non-compliance, or deter the commission of the non-compliance where it has not yet occurred, and to take such further action as appropriate in the public interest.
Further action could, among other actions, include the reporting of a matter to an appropriate authority under the appropriate circumstances, despite the absence of a legal obligation to do so, and without being limited by the ethical duty of confidentiality. Disclosing a matter to an appropriate authority would be at the end stage of the process in relation to serious identified or suspected NOCLAR, after consideration of a range of factors, including the appropriateness of the response of management and, where applicable, TCWG.
However, when applying the NOCLAR response framework, the CA(SA) or SAICA associate must still comply with the law and should not take any action that is contrary to the law. This would include considering whether specific legislation in the circumstances already imposes a reporting obligation, whether there are any laws or regulations that may preclude the reporting of a matter and whether there will be protection from criminal, civil or professional liability for communicating or reporting a matter.