The Brazilian Federal Accounting Council (CFC) has approved an extension to the statute of limitation period for accounting irregularities in effort to tackle fraud and corruption. While before accounting irregularities couldn’t be punished five years after they had taken place, now the five year period will only start on the date the irregularities were reported to the CFC.
With this critical change, accounting professionals who might have committed some irregularities while working on the accounts of Brazil presidential campaign of 2010 can still be reported and punished.
CFC vice president for supervision, ethics and discipline, Luiz Fernando Nóbrega said: "The amendment takes into account the social evolution of the country. We know that the justice system does not have the speed that it would like to have to find out the facts. The measure is another factor protecting society and extends the possibility of applying the penalty to professionals who have committed irregularities.”