Exposure Draft, Proposed SAS on NOCLAR

The Exposure Draft, Proposed SAS Inquiries of the Predecessor Auditor Regarding Fraud and Noncompliance With Laws and Regulations, narrowly amends AU-C section 210 in AICPA Professional Standards to require an auditor, prior to accepting an engagement, to specifically inquire of the predecessor auditor regarding identified or suspected fraud and matters involving noncompliance with laws and regulations. Consistent with the current standard, the auditor’s inquiries of the predecessor auditor are contingent with management authorizing the predecessor auditor to respond fully.