INDEPENDENT AUDITING AND THE IMPACTS OF AUDIT FAILURES RELATED TO FINANCIAL SCANDALS

Abstract

This article analyzes the role of independent auditing in publicly traded companies, focusing on the impact of audit failures in the occurrence of financial scandals. The research is based on the case of Lojas Americanas, which took place in Brazil in 2023, using public data, official reports, and journalistic sources. The study investigates the challenges faced by auditors, such as conflicts of interest, lack of professional skepticism, and dependence on information provided by the audited company itself. The results reveal the fragility of control and oversight processes, as well as the issuance of unqualified audit opinions despite distorted financial statements. The research also highlights the role of the media in uncovering fraud and its effects on the financial market, such as the sharp drop in stock value and the loss of investor confidence. The study underscores the need to strengthen ethics, independence, and technical rigor in auditing activities, reaffirming their strategic role in corporate governance and the protection of the public interest.