POLICY OF OPERATION
Law n. 6.385, of December 7th 1976, which rules the market of securities and created the Comissão de Valores Mobiliários (Security and Exchange Commission), determines in art.26 that only companies of accounting auditing or independent accounting auditors registered in the Comissão de Valores Mobiliários can audit the accounting statements of open companies, institutions, societies or companies which make up the system of distribution and intermediation of securities.
Exercising the power that was given it in the law, the Comissão de Valores Mobiliários pushed forward CVM Instruction n. 04 initially in October 24th 1978, instituting the first standards for registration of independent auditors and defining the conditions in which they can occasion refusal, suspension or cancellation.
It is important to emphasize that, many years later and having introduced various alterations in standards, the basic principles which guide the initial position of the CVM continue valid and updated. They are:
- the importance of an independent auditing system as indispensable support for the regulating organ;
- the figure of independent auditor as an indispensable element for market credibility and as instrument of inestimable value in protecting investors, in the measure that their function is to watch over the accountability and trustworthiness of the accounting demonstrations of the audited entity;
- the exactitude and clarity of the accounting statements, including the divulgation of explanatory notes for information indispensable to the visualization of the assets and financial situation and results of the audited entity, depend on an efficient auditing system and fundamentally on the auditor’s realization of their true role within this context; and
- the necessity that the market makes use of highly qualified independent auditors and that, at the same time, enjoy an elevated degree of independence in the exercise of their activity.