Brazil Securities Commission acquits Grant Thornton of audit procedure breaches but issues warnings for failing to send report to fund management

The Brazil Securities Commission (CVM) has concluded an administrative sanctioning proceeding against Grant Thornton Auditores Independentes Ltda. and auditor Tiago Kurt de Almeida Costa Brehmer concerning the audit of the RB Capital Renda Real Estate Investment Fund’s financial statements as of 30 June 2022. The CVM Collegiate cleared both respondents of alleged failures to apply specified audit procedures and documentation requirements, but imposed warnings for not providing a required report to the fund’s management. The case, opened by the Superintendence of Accounting and Audit Standards, alleged non-compliance with item 23 of Technical Audit Communication 32 and items 5 and A21 of NBC TA 230 (R1) on Audit Documentation, as breaches of articles 20 and 25(II) of CVM Resolution 23. Following the vote of Interim President Otto Lobo as rapporteur, the Collegiate acquitted the respondents in relation to CTA 32 item 23 and NBC TA 230 (R1) item 5 (article 20), but found a breach of NBC TA 230 (R1) item A21 and issued warnings for failing to send the “Relatório Circunstanciado” to the fund’s administration (article 25(II)). Director Marina Copola issued a voting statement while supporting the rapporteur’s conclusions, and a substitute director participated to meet quorum requirements for the decision.