Your employer is a social media company whose CFO and several employees are engaging in a scheme to skim profits from the company. You are the company's audit partner. An employee informs you about the matter. At this point, what is your responsibility under the new $$Noncompliance with Laws and Regulations$($NOCLAR$)$ interpretation?

Consider whether to withdraw from the engagement.

No action on your part would be required.

Obtain an understanding of the matter.

Report the NOCLAR to the appropriate authority.