Failure to assess non-compliance under NOCLAR and report RIs It was found that auditors often do not assess non-compliance as required. This is a two-stage, escalating obligation: NOCLAR per Section 360 of the IRBA Code: Requires auditors to identify, evaluate, and respond to actual or suspected non-compliance with laws and regulations (NOCLAR). Non-compliance may have a material effect on the financial statements, or may be fundamental to the entity's business (e.g. fraud, bribery and environmental breaches). Reportable Irregularity (RI) per APA Section 45: This is a specific, more severe subset of NOCLAR. An RI is defined in the APA [...]