Conflicts of interest in the hiring of non-audit services provided by audit firms: are the anti-conflict corporate policies adopted in Brazil adequate?
DOI:
https://doi.org/10.16930/2237-766220243457Keywords:
Independent audit, Non-audit services, Management report, Policies for hiring non-audit servicesAbstract
The present study analyzed the policies and procedures adopted to prevent conflicts of interest situations in Brazilian publicly traded companies that hired the same audit firm to perform both the financial statement audit and other types of non-audit services in the fiscal year 2020. Using content analysis technique, the study examined information available in the Management Reports for the year ended December 2020. which are mandatory disclosures to the market, and in the Policies for Hiring Non-Audit Services of their Independent Auditors valid in the year 2020. optionally submitted to the Securities and Exchange Commission. The observed results suggest a low level of detail in the information provided by companies, as most use standardized and concise texts in their respective Management Reports. Through best practices, it is noted that the Policies for Hiring Non-Audit Services of their Independent Auditors in the majority of analyzed companies identify the Audit Committee as responsible for service contracts. Some companies include a list of prohibited services and establish percentage limits for non-audit services to be provided. As a contribution, the study aimed to outline the policies adopted by companies in response to regulatory requirements and highlight some existing evidence in the disclosed information.
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