The audit work has been conducted following the CFC Resolution - Federal Accounting Council, established by the Institute of Independent Auditors of Brazil (IBRACON), Rules of the Securities Commission (CVM), and legislation.
Audit procedures consist of techniques that allow obtaining sufficient and appropriate evidence to support the auditors’ opinion on the financial statements, including compliance and substantive tests.
The application of audit procedures is carried out, due to the complexity and volume of operations, through selective tests, tests, and sampling, based on the analysis and risks of the audit and other elements, to determine the scope of the examinations necessary to the issuance of a report on the financial statements.
Observance and noun tests take into account the following basic techniques:
- Inspection - Examination of records, documents, and tangible assets;
- Observation - Follow-up of the procedure during its execution;
- Investigation and confirmation - Obtaining information from people or companies with knowledge of transactions inside or outside the FBDS;
- Calculation - Verification of the arithmetic accuracy of supporting documents, records and accounting statements, and other circumstances;
- Analytical review - Verification of the behavior of significant values through indices, quotients, absolute quantities, or other means to identify atypical situations or trends.
The accounting audit will also be carried out on the records generated by electronic data processing (if necessary) and on others kept by the Foundation that must undergo examinations for the proposed purposes.
In carrying out the work, the following aspects must be observed:
- Adequate planning and satisfactory supervision of assistants’ work;
- Assessment of accounting systems and internal controls;
- Inspection based mainly on the accounting records, which may be extended, if deemed necessary, to the records of any other sectors of the Foundation. Inspections will be carried out on a test basis (sampling).
The FBDS highlighted that when a funder submits or requests other procedures for the audit, the Foundation will comply with this request.