were published in the Federal Official Gazette (DOU), on November 16, modifications related to Brazilian Accounting Standards (NBC).

The objective according to the CFC is to strengthen accounting professionalism and promote convergence with international standards.

What are the standards and their modifications?

Revision cover different standards, they are:

Review NBC 20, which changes NBC TA 600 (R1); NBC 21 Review, which changes CTA 21 (R1); and the approval of NBC TA 600 (R2).

NBC 20 Review of 25 October 2023

The CFC plenary approved the NBC 20 review, applicable to independent auditors. The modifications are concentrated on various items, such as NBC PA 01 - Items A96 and A112 - Quality Management for Firms (Legal and Physical Persons) of independent auditors. Some changes in item 26 of NBC TA 220, which addresses the responsibility of the work partner in determining the competence and appropriate capabilities of the work team to perform audits. The same item, in NBC TA 600, expands the application of NBC TA 220 in audits of groups of groups, encouraging the creation of internal communication channels to facilitate the exchange of information between the firm and the teams.
< BR /> The review impacts NBC PA 02 - Work Quality Review, as in item A32, considering the complexity and size of audited groups. Additionally, in NBC TA 220 (R3) - Quality Management of the Financial Statements Audit, items A1, A24, A25, A38, A53, A54, A60 and A92 were changed, and item A21A was included. The review is applicable to all financial statements audits, including those related to groups. NBC TA 600 addresses special considerations for group affirmations audits, including when component auditors are involved. Strong>
This measure modifies NBC CTA 21 (R1) that deals with the issuance of the independent auditor report on the consolidated financial statements of the Prudential Conglomerate. Changes include the addition of item 4a and changes in items 14, 26 and 27. Item 4a highlights Resolution BCB No. 311, issued by the Central Bank (BACEN), on April 12, 2023, with effectiveness from 1 July 2023 in relation to changes in articles 4 and 5, and from May 1, 2023 to other devices. Prudent Conglomerates and Credit Cooperatives, according to BCB Resolution No. 311.

NBC TA 600 (R2), of October 25, 2023

Approved to NBC TA 600 (R2) - Special Considerations - Audits of Demonstrations Group accounting, including the work of component auditors. The decision was made in line with the convergence process of Brazilian accounting standards to international standards. The standard aims to address special considerations applicable to group audits, including those in which component auditors are involved, aligned with international practices, developed according to the International International Federation of Accountant (IFAC) international equivalent.

According to NBC TA 600 (R2), the audit rules are applicable to audits of group financial statements. The regulation expands the application of other relevant group audits, including NBC TA 220 - Quality Management of Financial Statements Audit, NBC TA 230 - Audit Documentation, NBC TA 300 - Planning of the Audit of Financial Statements, NBC TA 315 - IDENTIFICATION AND EVALUATION OF RISK RISKS REVIEW AND NBC TA 330 - Auditor Response to Risks Evaluated. of art. 6 of Decree-Law No. 9,295, of May 27, 1946, with amendments by Law No. 12,249, of June 11, 2010, reinforces its commitment to the convergence of Brazilian accounting practices and the alignment with international standards, seeking Improve the quality of auditors' work and financial statement audits.