INTRODUCTION

The most serious misconduct weve uncovered.

According to Claudius Modesti, the watchdogs director of enforcement, for

Deloitte is to be accused of failing to co-operate with a probe by the PCAOB.

Accounting scandals are nothing new in Brazil. Its former president, Dilma

Rousseff, was impeached in August for cooking her governments books. The bosses of its

biggest building firms have landed behind bars for padding contracts with Petrobras, the

state-run oil company. At least, governance gurus joke, all the imbrogliosand a three-

year-old law against briberyhave prompted companies to replace what people used to

call corruption departments with compliance offices. How ironic, then, that Brazils latest

affair involves a firm that is meant to ensure that firms stay on the straight and narrow.

What if one of the biggest four accounting firms is involved in a fraudulent act?

Will they admit their actions or not? Are you still going to trust them or let the authorities

do their responsibilities?

They are some of the queries that might pop into our minds, but what if these

happened for real? With a keen analysis and critical judgment, lets open our minds for

Deloitte Brazil Accounting Scandal.