Association suggests a further analysis about accounting procedures and the auditors’ role

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The Association of Capital Market Investors – Amec – sent to the Brazilian Securities and Exchange Commission – CVM – a contribution to the public hearing of the Office of the Superintendent of Accounting Standards – SNC 01/17, responsible for the update  of the CVM Instruction 308/99, especially with respect to the work of independent auditors. As CVM itself mentions in the public notice, an update is necessary as the instruction was issued more than 17 years ago and significant changes have taken place since then.
In the letter, Amec addresses points that go beyond those listed in the public hearing. It suggests that the update of the Instruction 308 is used as an opportunity to analyze not only the role of independent auditors, but also the “governance of accounting.” According to the letter, the implementation of the IFRS has significantly changed the role of the agents involved in the development of financial statements. The international system represents an important gain for the capital market, but its principle-based approach provides agents with a level of freedom that did not exist until then. The period since the implementation of the system in Brazil allows us to reflect and enhance the governance of accounting.
“We need a mechanism that ensures that the best decision is taken based on the true and fair representation of a company’s financial situation, even if it’s the most difficult one,” explains Mauro Rodrigues da Cunha, Amec CEO.
Click here to access the President Letter 05/2017 – Audits.