The Brazil Securities Commission (CVM) has ruled on an administrative sanctioning proceeding against UHY Bendoraytes & Cia – Auditores Independentes and its partner and technical lead, Flávio Augusto Guedes Viana, for alleged irregularities in the independent audit of the financial statements of the Botafogo Institucional Fundo de Investimento Renda Fixa as of 30 June 2019. The case, brought by the Accounting and Auditing Standards Superintendence (SNC) and reported by Director Marina Copola, resulted in majority decisions imposing fines of BRL 200,000 on the firm and BRL 85,000 on Viana for non-observance of requirements in NBC TA 200 (R1), NBC TA 500 (R1) and NBC TA 501, characterised as a breach of Article 20 of CVM Instruction 308. The Board also, by majority, imposed additional fines of BRL 150,000 on the firm and BRL 63,750 on Viana for breach of Article 25(I)(a) of the same instruction. By unanimous decision, the Board acquitted both respondents of a separate Article 20 allegation tied to non-compliance with NBC TA 500 (R1) and NBC TA 505; Director João Accioly dissented in part, including on one conviction and on the sanctioning outcome for the Article 25 breach. The sanctioned parties may appeal to the National Financial System Appeals Council (CRSFN), with suspensive effect.
Brazil Securities Commission (CVM) 2025-02-11
Brazil Securities Commission fines UHY Bendoraytes & Cia and partner Flávio Augusto Guedes Viana for irregularities in Botafogo fixed income fund audit
The Brazil Securities Commission (CVM) fined UHY Bendoraytes & Cia – Auditores Independentes and partner Flávio Augusto Guedes Viana for irregularities in auditing Botafogo Institucional Fundo de Investimento Renda Fixa's financial statements. The firm and Viana were fined BRL 200,000 and BRL 85,000, respectively, for breaches of NBC TA standards and CVM Instruction 308, with additional fines for further violations. Both parties were acquitted of a separate allegation and may appeal to the National Financial System Appeals Council.