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New code to fight fraud‚ corruption in accounting profession

In its quest to fight fraud‚ corruption and money laundering‚ the International Ethics Standards Board for Accountants introduced a new section to their code of ethics in July. The South African Institute of Professional Accountants (SAIPA) said section 360 in the code of ethics sets out a framework to guide auditors and accountants on what actions to take in the public interest when they become aware of a potential illegal act‚ known as non-compliance with laws and regulations‚ or NOCLAR‚ committed by a client or employer. The code states that a distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest. Once they become aware of the NOCLAR‚ accountants have to report it to their direct superior. If they are the most senior person‚ they have to consult with the board of directors or anybody who is involved in corporate governance in the organisation.