Uma Análise sobre Reconhecimento de Impairment no Período de
COVID-19: Big Four Versus Não Big Four

Abstract
The period of the COVID-19 pandemic has brought challenges to companies around the world, affecting their ability to generate revenue and causing changes in market conditions. Given these circumstances, the assessment of Impairment expenses has become crucial for companies to correctly reflect the recoverable value of their assets
and provide serviced information to external users. Thus, we sought to carry out a comparative analysis on the recognition of Impairment in listed companies audited by the Big Four (the four largest audit firms in the world) versus non-Big Four during the period of COVID-19. The intuition of the analysis is that the companies audited by the Big Four companies face more difficulties in using accounting numbers opportunistically than other companies. The analysis seeks to understand
the approaches adopted, the accounting policies applied,
and the disclosures related to Impairment in different audit contexts. It
is hoped that the results of this analysis will contribute to a more comprehensive
understanding of the effects of COVID-19 on financial disciplines, loss assessment, and whether the pandemic would impact audit quality. In addition, the study aims to provide relevant insights for accounting, auditing and investors professionals, helping them to make outstanding decisions and to assess the quality of accounting
information in times of crisis.
Keywords: Impairment, COVID-19, Big Four, audit, accounting policies, disclosures

REFERENCES
ALAGATHURAI, A. (2021). The role of expertise in audit quality: A literature review. Journal of Accounting Literature, 40, 100526.
ALMEIDA, A. G. O impacto da pandemia da COVID-19 na avaliação do Impairment: considerações e desafios. Revista Catarinense da
Ciência Contábil, v. 19, n. 59, p. 27-40, 2020.
ALMEIDA, L., Santos, F., & Oliveira, M. (2021). Quality of audit work: an analysis of the auditors' perspective. Journal of Financial Reporting
and Accounting, 19(3), 542-561.
ANDRADE, S., Martins, F., & Lopes, I. (2021). The influence of auditor's independence on the quality of the audit report. International Journal
of Disclosure and Governance, 18(2), 111-133.
BORBA, M. O PIB na Economia Mundial em 2020 – 2021. Jornal Folha PE. Disponível em: https://www.folhape.com.br/colunistas/pernambuco-
economico/o-pib-na-economia- mundial-em-2020-2021/30489/
BAELE, L. et al. COVID-19 and Financial Markets: Evidence from around the World. Review of Corporate Finance Studies, v. 9, n. 3, p.
531-595, 2020.
BALDWIN, R.; TOMIURA, E. Thinking Ahead about the Trade Impact of COVID-19. In: BALDWIN, R.; WEDER DI MAURO, B. (Eds.). Economics
in the Time of COVID-19. London: CEPR Press, 2020.
CARVALHO, L. N. et al. The Role of Big Data Analytics in the Auditing Profession: A Systematic Literature Review. Journal of Accounting,
Auditing & Finance, v. 35, n. 4, p. 632- 660, 2020.
CHRISTENSEN, B. et al. international differences in the timely loss recognition in banks' loan loss provisions. The Accounting Review, v.
88, n. 4, p. 1385-1412, 2013.
CHARLES E. Jordan & STANLEY J. Clark (2015). Do Canadian Companies Employ Big Bath Accounting When Recording Goodwill Impairment.
Disponível em: https://encr.pw/euzdw
COSTA, A. et al. The Digital Transformation in Audit and Assurance Services: A Systematic Literature Review. In: Information Systems,
E-learning, and Knowledge Management Research, Cham: Springer, 2020.
COHEN, J. et al. Auditing: An International Approach. Andover: Cengage Learning, 2017. Financial Accounting Standards Board (FASB).
Impairment or Disposal of Long-Lived Assets. Disponível em: https://asc.fasb.org/topic&ex_sec=62&trg=.
Comitê de Pronunciamentos Contábeis (CPC). Pronunciamento Técnico CPC 01 (R1): Redução ao Valor Recuperável de Ativos.
DECHOW, P. M. et al. The relation between accounting quality and expected stock returns: A quantile regression approach. Contemporary
Accounting Research, v. 36, n. 2, p. 778-812, 2019.
DECHOW, P. M. et al. Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting
and Economics, v. 50, n. 2-3, p. 344-401, 2010.
DEFOND, M., Zhang, J., & Zhou, Y. (2021). International expansion and audit quality: Evidence from the Big 4 accounting firms. Journal of
Accounting Research, 59(1), 1-46.
DOMBRET, A., Ruppert, A., & Tröger, T. (2021). Wirecard: A Case Study on the Audit Expectations Gap and the Role of the Auditor. Journal
of Corporate Accounting & Finance, 33(2), 127-139.
GENDRON, Y. et al. Independence and the market for audit services: A critical assessment of recent regulatory reforms in the European
Union. Accounting, Auditing & Accountability Journal, v. 32, n. 5, p. 1367-1398, 2019.
GROOT, T. et al. The Determinants of Impairment Loss Recognition: Evidence from IFRS 9. European Accounting Review, v. 29, n. 2, p.
307-336, 2020.
HATHERLY, D.; SPONHOLZ, J. PwC IFRS Manual of Accounting 2017. London: Bloomsbury Professional, 2017.
HUNG, M. et al. Big N auditors and accounting conservatism. Contemporary Accounting Research, v. 35, n. 1, p. 388-410, 2018.
INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB). International Financial Reporting Standard 9: Financial Instruments. London:IASB, 2015.
IDC MarketScape. (2021). Worldwide Business Consulting Services 2021 Vendor Assessment.
IUDÍCIBUS, S. de et al. Manual de Contabilidade das Sociedades por Ações: aplicável às demais sociedades. 10. ed. São Paulo: Atlas, 2019.
KIDWELL, D. S. et al. Financial Institutions, Markets, and Money. Boston: Cengage Learning, 2020.
KNAPP, M. C. et al. Audit quality and quality controls: A study of PCAOB inspections of smaller auditors. Contemporary Accounting Research,
v. 34, n. 1, p. 446-477, 2017.
KNAPP, M. C. et al. Auditing & Assurance Services. New York: McGraw-Hill Education, 2017.
KRISHNAN, G. V. The global concentration in audit markets: Evidence from 41 countries. Auditing: A Journal of Practice & Theory, v. 38,n. 1, p. 95-119, 2019.
LOUWERS, T. J. et al. Auditing & Assurance Services. New York: McGraw-Hill Education, 2020.
LOCATI, C. Staying vigilant against fraud during the pandemic. Journal of Accountancy. (01 de March de 2021)
MAIA L. Impairment de ativos e impactos da COVID-19 nas demonstrações financeiras. Disponível em: https://crcgo.org.br/wp-content/
uploads/2022/12/Impairment_efeitos- Covid19-nas-DFs_09032021.pdf
MCKIBBIN, W. J.; FERNANDO, R. The Global Macroeconomic Impacts of COVID-19: Seven Scenarios. CAMA Working Paper No. 19/2020, 2020.