Instituto dos Auditores Independentes do Brasil

The Brazilian Institute of Independent Auditors (IBRACON) supports the quality assurance review system for independent auditors through its participation in the External Quality Review Managing Committee Program (CRE), which operates under the oversight of the Securities and Exchange Commission (CVM) and in cooperation with the Federal Council of Accounting (CFC).

IBRACON continues to work with the CFC through the CRE to monitor and enhance the quality assurance review process and assess its alignment with Statement of Membership Obligation 1 requirements. The organization participates in discussions on improvements to the review system and supports the ongoing development of quality assurance arrangements within the jurisdiction.

Since the previous assessment, IBRACON has continued supporting implementation of the International Standard on Quality Management 1 and International Standard on Quality Management 2 through technical guidance, publications, webinars, conferences, and professional education activities. IBRACON also provides implementation support through its technical committees and the National Seminar for Independent Auditors, helping members understand and apply quality management requirements in practice.

IBRACON continues to collaborate with the CFC, CVM, and other stakeholders to promote high-quality auditing practices and strengthen the effectiveness of the quality assurance review system. The institute has demonstrated an ongoing commitment to supporting implementation of SMO 1 requirements and maintaining the quality of audit services in Brazil.

IBRACON is encouraged to continue supporting members with implementation of quality management standards and contributing to discussions on further strengthening the quality assurance framework within the jurisdiction.

Current Status: Sustain

The Brazilian Institute of Independent Auditors (IBRACON) does not have direct responsibility for establishing initial professional development requirements for professional accountants in Brazil. These requirements are established by the Ministry of Education (MEC), the Federal Council of Accounting (CFC), the Regional Accounting Councils (CRCs), and relevant sector regulators. IBRACON supports these stakeholders through technical input, professional education activities, and advocacy to strengthen education requirements for auditors and other accountancy professionals.

Since the previous assessment, Brazil has updated the National Curriculum Guidelines for undergraduate accounting programs through Resolution CNE/CES No. 1 of March 27, 2024, which introduced supervised internships as a mandatory component of the accounting degree and strengthened alignment with the International Education Standards. IBRACON has continued to support the CFC’s initiatives to promote alignment with the IES and provides continuing professional development programs, technical events, publications, and guidance to support members’ competence development.

Continuing professional development requirements are established by the CFC under NBC PG 12 and apply to specified categories of professionals, including independent auditors and professionals responsible for preparing or overseeing financial statements of regulated entities. IBRACON supports implementation by offering accredited training and helping members comply with applicable CPD requirements.

IBRACON is encouraged to continue working with the CFC, MEC, and relevant regulators to support further alignment with the IES, particularly regarding continuing professional development coverage and International Education Standard 8 for engagement partners, while continuing to provide education and implementation support to its members.

Current Status: Sustain

The Federal Council of Accounting (CFC) is responsible for adopting auditing standards in Brazil. The Brazilian Institute of Independent Auditors (IBRACON) supports the CFC in the adoption and implementation of International Standards on Auditing (ISA), which are incorporated into the Brazilian Standards on Auditing, known as NBC TA, through the national convergence process.

IBRACON continues to support the implementation of NBC TA through translation assistance, technical analysis, public consultation support, publications, professional education, and dissemination of updates to members. Since the previous assessment, IBRACON has supported implementation of revised standards, including NBC TA 600 (R2), which applies to group audits for periods beginning on or after January 1, 2024.

IBRACON also monitors developments issued by the International Auditing and Assurance Standards Board (IAASB), supports members through technical committees and training activities, and participates in public consultations related to new and revised standards. These activities demonstrate an ongoing process to support adoption and implementation of SMO 3 requirements within its area of responsibility.

IBRACON is encouraged to continue working with the CFC to support timely convergence with new and revised ISA and to provide members with practical guidance and training on implementation.

Current Status: Sustain

The Federal Council of Accounting (CFC) is legally responsible for setting ethical requirements for professional accountants in Brazil. The Brazilian Institute of Independent Auditors (IBRACON) supports the CFC in monitoring, translating, adopting, and implementing requirements of the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants.

IBRACON continues to use its best endeavors to support convergence with the IESBA Code and to assist members with implementation through technical activities, professional education, publications, and dissemination of ethics and independence updates. The national ethics framework includes NBC PG 01, Code of Ethics for Professional Accountants, and NBC PG standards correlated with the IESBA Code, including NBC PG 100, NBC PG 200, and NBC PG 300. The CFC and IBRACON report that the national Code is aligned with the 2024 edition of the IESBA Handbook.

Since the previous assessment, IBRACON has continued supporting CFC initiatives to update and implement the national ethics and independence framework.

IBRACON has demonstrated an ongoing process to support implementation of SMO 4 requirements within its area of responsibility. IBRACON is encouraged to continue working with the CFC to support timely incorporation of the latest IESBA Code updates into national requirements and to provide members with practical implementation guidance and training on ethics, independence, and emerging sustainability-related ethics requirements.

Current Status: Sustain

The Federal Council of Accounting (CFC) is legally responsible for public sector accounting standards in Brazil. The Brazilian Institute of Independent Auditors (IBRACON) has no direct responsibility for setting these standards but supports public sector financial reporting improvements through awareness-raising, professional education, and technical dialogue where relevant.

Since the previous assessment, the CFC has continued to advance the Brazilian Public Sector Accounting Standards, known as NBC TSP, through the Permanent Committee for Standards Applied to the Public Sector. The CFC’s 2025 to 2029 Strategic Plan for the Committee sets out actions to consolidate convergence with International Public Sector Accounting Standards and strengthen implementation. In 2026, the CFC published revised NBC TSP standards and NBC TSP 37 on property, plant, and equipment.

IBRACON has continued to support public sector accounting awareness within its area of responsibility, including through technical articles and professional education activities on updates to public sector accounting standards. These activities demonstrate that IBRACON uses its best endeavors to support SMO 5 despite not having standard-setting authority in this area.

IBRACON is encouraged to continue supporting awareness of NBC TSP and public sector financial reporting developments through professional education, technical dialogue, and cooperation with the CFC where relevant.

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 Securities and Exchange Commission (CVM) is responsible for administrative enforcement procedures involving independent auditors registered to operate in the securities market.

The Brazilian Institute of Independent Auditors (IBRACON) does not have direct responsibility for the jurisdiction-level investigation and discipline system. However, IBRACON supports compliance and ethical conduct among its members through its Code of Ethical Conduct, complaints channel, and Commission of Conduct. IBRACON also refers members to the CFC Code of Ethics and supports implementation of professional and ethical requirements through training, technical activities, and dissemination of relevant updates.

Since the previous assessment, the CFC has updated procedural guidance for the CFC/CRC system through the 2024 Manual of Procedural Procedures and continues to publish information on sanctions after completion of administrative proceedings. CVM Resolution No. 45 establishes procedures for administrative enforcement proceedings within CVM.

IBRACON has demonstrated an ongoing process to support SMO 6 requirements within its area of responsibility. IBRACON is encouraged to continue supporting ethical conduct, maintaining effective complaints and conduct mechanisms, and cooperating with the CFC, CRCs, and CVM where relevant to strengthen public trust in the profession.

Current Status: Sustain

The Federal Council of Accounting (CFC) has 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. The Brazilian Institute of Independent Auditors (IBRACON) is a founding member of CPC and supports the national convergence process through technical input, translation support, implementation activities, and engagement with regulators and standard setters.

IBRACON, through CPC and in cooperation with the CFC, monitors new and revised standards issued by the International Accounting Standards Board and supports their incorporation into Brazilian generally accepted accounting principles. The IFRS Foundation reports that CPC approves IFRS Standards for application in Brazil as issued by the IASB Board, and that relevant regulators, including the Securities and Exchange Commission, Central Bank of Brazil, and insurance regulator, enforce CPC standards.

Since the previous assessment, Brazil has advanced sustainability reporting requirements through CVM Resolution No. 193 and related measures incorporating IFRS S1 and IFRS S2 into the Brazilian regulatory framework. IBRACON has supported implementation through professional education, technical events, and engagement on sustainability reporting and assurance developments.

IBRACON continues to demonstrate an ongoing process to support SMO 7 requirements within its area of responsibility. IBRACON is encouraged to continue working with the CFC, CPC, regulators, and other stakeholders to support timely convergence with IFRS Accounting Standards and implementation of IFRS Sustainability Disclosure Standards through guidance, training, and technical engagement.

Current Status: Sustain