The following corporations are required to receive audit from certified and independent auditors by Brazil Securities Exchange Committee (CVM).
・ Listed corporations
・ Large-scale companies
(Gross assets across 2,400,000 BRL or total sales across 3,000,000 BRL for the previous year)
・ Financial offices
・ Others (Securities Exchange Offices, Investment Fond, etc.)
New topics of financial audit in Brazil
①On March 25th 2015, San Paulo Business Registration presented the following company has to disclose the financial statement to official gazette and public.
・ The corporations in San Paulo
・ The large-scale companies
②As a proof document of public announcement, the proceedings of approval resolution of closing books has been the liability of corporations.
This announcement above is almost same with the following states.
・ Rio de Janeiro State (from November 2011)
・ Minas Gerais State (from May 2010)
・ Tocantins State (from May 2011)
If the corporations do not satisfy the identification of large-scale corporations, the accountant or a person in charge should sign in some documents and explain that the corporations do not satisfy the conditions.
The announcement is also recognized by appropriate approval resolution.
③The time of application is March 25th 2015.
④The influences of neglecting these duties
・ Restrictions of attending to public budding according to public contracts
・ Difficulties of financing in banks
・ The arguments from the third party who has a lost
・ The problem of responsibilities of society
Penalties of financial audit
According to the contents of Dictamen Fiscal, it is possible to be pointed out by SAT. In this case, revenue, cost of sales, overhead and other tax payment items will be checked carefully. And in the case of pointed out by SAT that the necessity of changing amount of money, it will be possible to be required to pay the additional tax with late payment.
However, in the most of cases, the SAT will ask accountants directly about the problems of Dictamen Fiscal pointed out by SAT. Therefore, it is very important to appoint the excellent accountants. And because of the long period of financial audit in Mexico, the salary of accountant in Mexico is higher than other countries.
To learn more about our incorporation assistance and a range of services of financial audit in Brazil, send us a message or call us at +81-3-5369-2930.