A Review of AU-C Section 240 and the NOCLAR Rules

This course provides a clear, practical, and up‑to‑date exploration of the auditor’s responsibilities related to fraud and noncompliance with laws and regulations (NOCLAR). Participants will examine AU‑C Section 240, the proposed AICPA standard *Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements*, and the NOCLAR provisions within the AICPA Code of Professional Conduct.

Using real‑world examples, and regulatory enforcement themes, attendees will learn how to identify red flags for fraud, evaluate fraud risk factors, respond to suspected noncompliance, and fulfill communication and documentation obligations. The program also explains how whistleblower activity and increasingly complex regulatory environments impact audit risk and fraud detection responsibilities.

Who Should Attend
This course is ideal for professionals responsible for assessing, detecting, or responding to fraud or noncompliance during assurance engagements

Topics Covered

• Overview of AU‑C Section 240 and PCAOB AS 2401 requirements
• Fraud risk assessment procedures and red flag identification
• Common fraud schemes affecting organizations today
• Understanding and applying NOCLAR requirements
• The proposed AICPA standard: Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
• Documentation expectations and common deficiencies related to fraud procedures
• Communication responsibilities for fraud and NOCLAR matters
• Case studies involving fraud detection failures and successful auditor responses

Learning Objectives

• Identify common red flags, fraud schemes, and behavioral indicators associated with financial reporting fraud
• Explain the auditor’s responsibilities under AU‑C Section 240 and PCAOB AS 2401 for considering fraud during an audit
• Interpret and apply the NOCLAR rules within the AICPA Code of Professional Conduct
• Evaluate the new requirements proposed in the draft standard Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
• Differentiate between fraud and error, and identify factors that increase fraud risk, including tone at the top and organizational culture
• Design and document fraud‑responsive audit procedures aligned with professional standards
• Communicate fraud‑related matters and suspected noncompliance appropriately to management, those charged with governance, or regulators

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None