FBDS’s Audit Policy establishes the principles, responsibilities, and guidelines for conducting audits, aligning with national and international best practices, including the standards of the Institute of Auditors of Brazil (Audibra).
Objectives
The objectives of the audits are to: (i) assess the reliability of data presented in the annual Financial Statements or in the reporting of a specific project; (ii) verify compliance with laws, regulations, and accounting standards; (iii) identify opportunities for improvement in operational and financial processes; and (iv) protect against fraud, errors, and irregularities.
Core Principles
- Independence: Act without external interference;
- Objectivity: Impartial analysis and conclusions based on evidence;
- Confidentiality: Maintain confidentiality of sensitive information (in accordance with LGPD and internal policies).
Auditor Requirements
Auditors must:
- Be independent, with no ties of any kind to FBDS;
- Hold professional certification and be registered with the CVM – Securities and Exchange Commission of Brazil;
- Have proven experience in auditing for the third sector, and knowledge of procedures and requirements of the Public Prosecutor’s Office and applicable regulations;
- Sign a confidentiality and conflict of interest disclosure agreement.
Auditor Selection and Rotation
- Selection process: Initial contracting via price quotation with at least three participating firms;
- Continuity: If the services are deemed satisfactory by the Fiscal Council, contract extensions may be signed, allowing the continuation of services for up to 3 years;
- Service duration: The same auditor may not serve for more than 5 consecutive years.
Responsibilities – Fiscal Council and Executive Board
- Approve the Audit Plan;
- Review and endorse critical reports;
- Ensure adequate resources are available for the audit;
- Facilitate access to required documents, systems, and information;
- Implement corrective actions within stipulated deadlines;
- Monitor the implementation of post-audit actions.
Methodology
- Planning: Preliminary risk analysis and scope definition.
- Execution: Control testing, interviews, sampling, and data analysis techniques.
- Reporting: A formal document including: (i) audit context; (ii) findings and nonconformities; (iii) recommendations and action plan; and (iv) follow-up plan, if applicable, to verify the effectiveness of corrections.
Types of Audit
- Annual audits, subject to approval by the Fiscal and Curator Councils;
- Special audits, due to suspected fraud, complaints, or regulatory changes;
- Project audits, according to their characteristics and donor/funding agency requirements.
Schedules and Deadlines
- Annual External Audit: To be conducted within 3 months after the fiscal year-end;
- Project Audits: As required by donors/funding agencies;
- Report submission deadlines: Within 90 days after audit completion.
Compliance and Sanctions
- All audits must result in an unqualified opinion;
- In cases of minor qualifications, recommendations must be addressed within 60 days, under the supervision of the Fiscal Council and Executive Board;
- Irregularities will be reported to the Curator Council and relevant authorities, if applicable.