Achieving Informational Neutrality in Dual VAT: Auditing, Forensic Accounting, and Digital Enforcement in Brazil

• Proposes a framework for achieving informational neutrality in financial reporting under Brazil’s dual VAT (IBS/CBS) using digital enforcement tools.
• Integrates tax design, organizational controls, and the roles of auditors/forensic accountants to enhance transparency and accountability.
• Presents four propositions linking robust disclosure, credit-blocking, digital forensic techniques, and intergovernmental coordination to improved audit quality and predictability.
• Illustrates the framework with Brazil’s VAT reform but generalizes it for other dual VAT systems.
• Offers practical guidance for policymakers and firms on accounting policies, audit strategies, controls, and the use of electronic data analytics.

Source: papers.ssrn.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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