Conselho Federal de Contabilidade

As the regulator of the accountancy profession, the Federal Council of Accounting (CFC) shares responsibility with the Securities and Exchange Commission (CVM) for the quality assurance review system applicable to independent auditors. The External Quality Review Managing Committee Program (CRE), jointly administered by the CFC and the Brazilian Institute of Independent Auditors (IBRACON), operates the peer review system under NBC PA 11. The CFC confirms that the CRE applies to independent auditors registered with the CVM and in the National Register of Independent Auditors.

Since the previous assessment, the CFC has adopted NBC PA 01 and NBC PA 02, which correspond to International Standard on Quality Management 1 and International Standard on Quality Management 2, respectively. The CFC and IBRACON have also issued guidance and training to support implementation of the quality management standards, including CRE communications to auditors and IBRACON training on ISQM 1 and ISQM 2.

The CFC continues to support implementation through the CRE, publication of applicable standards, and collaboration with IBRACON and CVM. However, remaining jurisdiction-level gaps continue to affect fulfillment. CVM-registered auditors are subject to external quality control reviews on a four-year cycle, and the system does not demonstrably cover all mandatory audits in accordance with SMO 1.

The CFC is encouraged to continue working with CVM, IBRACON, and other relevant regulators to expand the scope of mandatory quality assurance reviews to all audits, align the review cycle for public interest entity audits with SMO 1 requirements, and continue supporting firms in embedding the quality management standards into practice.

Current Status: Review & Improve

The Federal Council of Accounting (CFC) shares responsibility for professional accountancy education with the Ministry of Education (MEC), Regional Accounting Councils (CRCs), and relevant sector regulators. Entry into the profession requires completion of a bachelor’s degree in accounting from a recognized higher education institution, passing the CFC’s Unified Sufficiency Examination, and registration with the relevant CRC. Additional Technical Qualification Examinations administered by the CFC apply to auditors providing services to entities regulated by the Securities and Exchange Commission, Central Bank of Brazil, Superintendence of Private Insurance, and National Superintendence for Complementary Pensions.

Since the previous assessment, the CFC has supported the modernization of accountancy education requirements through engagement with MEC on the revised National Curriculum Guidelines for undergraduate accounting programs, issued through Resolution CNE/CES No. 1 of March 27, 2024. The revised guidelines strengthen alignment with the International Education Standards by introducing supervised internships as a mandatory component of the degree program and updating curriculum expectations.

The CFC also continues to administer the Unified Sufficiency Examination and the Continuing Professional Development Program under NBC PG 12. Continuing professional development requirements apply to specified categories of professionals, including independent auditors and professionals responsible for preparing or overseeing financial statements of regulated entities, large companies, and other entities within the scope of CFC requirements.

The CFC is encouraged to continue working with MEC, IBRACON, and relevant regulators to further align national education requirements with the International Education Standards, particularly by expanding continuing professional development requirements to all professional accountants and addressing the remaining gap related to International Education Standard 8 for engagement partners.

Current Status: Review & Improve

The Federal Council of Accounting (CFC) is responsible for adopting auditing standards for all audits in Brazil. Since 2005, the CFC has adopted International Standards on Auditing (ISA) as Brazilian Standards on Auditing, known as NBC TA, through a convergence process undertaken in cooperation with the Brazilian Institute of Independent Auditors (IBRACON).

The CFC maintains the national NBC TA standards library and continues to issue revisions to align national auditing standards with ISA, including recent updates such as NBC TA 600 (R2). The CFC also monitors International Auditing and Assurance Standards Board developments and disseminates information on new and revised pronouncements, including the 2025 IAASB Handbook and forthcoming revised standards.

The CFC supports implementation by publishing standards and technical materials, cooperating with IBRACON on translation and technical matters, and supporting professional education activities on NBC TA and related audit requirements. IBRACON also provides training on Brazilian auditing standards and related quality management requirements.

The CFC is encouraged to continue monitoring IAASB developments, promptly incorporating new and revised standards into the NBC TA framework, and supporting practitioners with implementation guidance and training, including on revised standards not yet effective.

Current Status: Sustain

Decree-Law No. 9,295 of 1946, as amended by Law No. 12,249 of 2010, grants the Federal Council of Accounting (CFC) authority to establish ethical requirements for the accountancy profession in Brazil. The CFC has issued NBC PG 01, Code of Ethics for Professional Accountants, and maintains professional ethics and independence requirements through the NBC PG and NBC PA standards, including standards correlated with the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants.

The CFC, in cooperation with the Brazilian Institute of Independent Auditors (IBRACON), monitors IESBA developments and updates national requirements through its ongoing convergence process. Since the previous assessment, CFC and IBRACON have continued to support implementation through publication of national standards, dissemination of ethics-related updates, technical activities, and professional education initiatives, including activities linked to ethics, independence, sustainability, and assurance.

The jurisdiction-level framework is substantially aligned with SMO 4. However, the 2025 IESBA Handbook is the latest version currently in effect and incorporates the tax planning pronouncement effective for services and activities beginning after June 30, 2025.

Pending timely incorporation of the latest IESBA Code updates into national requirements, the CFC is encouraged to continue working with IBRACON to formalize and maintain a process for adopting the latest IESBA Code updates on a timely basis and supporting members with implementation guidance and training.

Current Status: Review & Improve

The Federal Council of Accounting (CFC) has direct responsibility for setting public sector accounting standards in Brazil. The CFC issues the Brazilian Public Sector Accounting Standards, known as NBC TSP, which are based on International Public Sector Accounting Standards and adapted to the Brazilian legal and institutional context.

The CFC supports implementation through the Permanent Committee for Standards Applied to the Public Sector (CP CASP), which leads the ongoing convergence, review, and updating of NBC TSP. The CFC’s 2025 to 2029 CP CASP Strategic Plan sets out actions to consolidate the convergence process and strengthen implementation of international public sector accounting standards in Brazil. The CFC also continues to maintain the NBC TSP standards library and, in 2026, published revisions to the Conceptual Framework and several NBC TSP standards, as well as NBC TSP 37 on property, plant, and equipment.

The CFC supports implementation through technical publications, communication activities, consultations, and professional education for public sector accountants. It also engages with government stakeholders, including the National Treasury Secretariat, given that public sector entities are ultimately responsible for implementation across federal, state, and municipal levels. The CFC has also continued monitoring international developments in public sector sustainability reporting through its public sector standards work.

The CFC is encouraged to continue working with the National Treasury Secretariat and public sector stakeholders to support consistent implementation of NBC TSP across all levels of government, monitor emerging IPSASB sustainability reporting standards, and maintain its ongoing process for updating national public sector accounting standards.

Current Status: Sustain

The Federal Council of Accounting (CFC) and the Regional Accounting Councils (CRCs) have authority to investigate and discipline professional accountants under Decree-Law No. 9,295 of 1946, as amended by Law No. 12,249 of 2010. The CFC and CRCs operate an administrative enforcement system for professional and ethical breaches through the Chambers of Inspection, Ethics and Discipline, the Regional Ethics and Discipline Courts, and the Superior Ethics and Discipline Court.

The CFC continues to support consistent implementation of the investigation and discipline system through national regulations, procedural guidance, and transparency on disciplinary sanctions. In 2024, the CFC published an updated Manual of Procedural Procedures to support the processing and judgment of administrative enforcement cases. The CFC also maintains public information on penalties and disciplinary procedures.

The CFC has assessed the system against SMO 6 and identified a remaining structural gap, as Brazilian legislation does not permit non-accountants to serve on the ethics and discipline courts. Notwithstanding this legal limitation, the CFC has demonstrated ongoing efforts to maintain an operational investigation and discipline framework and to improve consistency across the federal and regional levels.

The CFC is encouraged to continue reviewing the investigation and discipline system against SMO 6, strengthen transparency on enforcement outcomes, and identify any legally permissible mechanisms to incorporate public-interest perspectives into disciplinary processes.

Current Status: Sustain

The Federal Council of Accounting (CFC) has direct responsibility for issuing accounting standards in Brazil and participates in the Brazilian Accounting Pronouncements Committee (CPC), which centralizes the development of national accounting pronouncements and promotes convergence with International Financial Reporting Standards (IFRS) Accounting Standards. Brazilian generally accepted accounting principles have been fully converged with IFRS since 2010, and IFRS are required for consolidated financial statements of listed entities.

The CFC, together with the Brazilian Institute of Independent Auditors (IBRACON) and other CPC stakeholders, maintains an ongoing process to monitor new and revised standards issued by the International Accounting Standards Board and incorporate them into Brazilian accounting standards. The CFC and IBRACON also support implementation through technical materials, professional education activities, and engagement with regulators responsible for enforcement.

Since the previous assessment, Brazil has also advanced sustainability reporting requirements. Securities and Exchange Commission (CVM) Resolution No. 193 established a framework for sustainability-related financial disclosures based on IFRS S1 and IFRS S2, with subsequent amendments setting the implementation timeline and related requirements for entities under CVM regulation.

The CFC is encouraged to continue working through CPC, IBRACON, CVM, and other regulators to maintain timely convergence with IFRS Accounting Standards and support implementation of IFRS Sustainability Disclosure Standards through guidance, training, and stakeholder engagement.

Current Status: Sustain