Corruption remains a problem, both in the Netherlands and abroad. This is why it is important for accountants to know how to deal with corruption risks properly. The Dutch professional body for accountants (NBA) has revised Guideline 1137 to support them.
What is Guideline 1137?
Guideline 1137 is a document that helps accountants identify and tackle corruption. This new version focuses specifically on bribery, kickbacks (money, goods or gifts in return for an assignment) and facilitation payments.
The guideline focuses mainly on audit engagements, but it also includes a separate chapter on compilation engagements.
Corruption is fraud
Corruption often involves false documents and is considered a form of fraud. The Guideline therefore follows the rules of Standard 240. If corruption is suspected without fraud, Standard 250 and the NV NOCLAR apply. The Guideline offers many practical examples showing how accountants can respond to possible corruption risks.
What should the accountant do?
The Guideline is intended for public accountants, internal accountants and accountants in business. Depending on the engagement and position, an accountant needs to pay extra attention to corruption risks. For an auditor, the bar is higher than for an accountant in business. In any case, the accountant must discuss any indications of corruption with management and insist on remediation. What happens next depends on the engagement and the client's response.
Consultation responses and a new structure
The revised Guideline 1137 was issued for consultation in the summer of 2023. Fifteen responses were received and processed. The new structure is more accessible, with practical examples, diagrams and links to relevant sections and external sources. The language used has also been simplified.
With the revision of Guideline 1137, the NBA offers accountants a clear and practical guide to recognizing and tackling corruption. This is an important step in the fight against corruption and helps accountants do their work even better.
For more information about the new Guideline 1137, visit the NBA project page.
