First year of the new auditor’s report: Analysis of the key audit matters of the Ibovespa listed companies

Abstract

The new auditor’s report applicable to Brazilian companies as of the fiscal year ended December 31, 2016 will present the key audit matters (KAM) and, therefore, should be customized to the reality of the audited companies. The purpose of this study is to identify the content of the auditors’ reports issued on this date to assess the main auditing issues reported and analize if they are adequate to the new requirement. The sample is made up of 53 listed Brazilian companies at Ibovespa index in July 2017. The data was collected from the companies “independent auditors” reports published in fiscal year 2016. The results show that the reports are customized, and the main KAM observed were assessment of the recovery value of non-current assets, revenues, provisions and contingent liabilities, investments in directly or indirect subsidiaries and realization of deferred taxes and taxes recovering. These subjects were observed in 62% of the occurrences observed in this study.