Lawsuits judged by CVM: analysis of the main infractions committed by independent auditors

Abstract

Purpose: The purpose of this article is to analyze the main infractions committed by independent auditors in the sphere of the Brazilian Securities and Exchange Commission from 2010 to 2020. Methodology: The study is characterized as descriptive and documentary with a quali-quantitative approach. Information from administrative sanctioning processes judged by CVM in the period 2010 to 2020 was used to identify characteristics such as the profile of the accused and the penalties applied, which were submitted to correlation analysis to verify if there is any direct relationship of these variables with the infractions committed. Results: The study points out that among the most recurrent infractions are "Absence of planning and audit procedures that lead to divergences in the independent auditor's report" and "Irregularities in the External Quality Review Program", which represent 39.47% and 34, 21% of the analyzed sample, respectively. In the correlation analysis, it was identified that the occurrence of infraction “b” is linked with the “repeat infractions” charges and the “temporary suspension” penalty. In addition, it was evident that the increase of “repeat infractions” charges are mainly linked to the increase of defendants classified as “non Big Four”. Contributions of the Study: The results of the study show users of financial statements the motivation for filling lawsuits against independent auditors with the CVM and the infractions they committed with the aim of contributing to the improvement of compliance with auditing standards and procedures by revealing the most recurrent infractions under different methodologies and periods. It also presents the degree of correlation between the infraction committed, the profile of the accused (segregating into Big Four and not Big Four) and the penalty applied.

Keywords

• independent auditor, cvm, infractions.