Senator Damares Alves from the Republicanos party in Brazil has made formal requests to the president of the Economic Affairs Committee, Renan Calheiros, for the auditing firms KPMG and PwC to provide clarifications about their audits of Banco Master's financial statements. This inquiry comes in the context of the bank's liquidation, decreed by Brazil's Central Bank in November of the previous year. Both KPMG and PwC were responsible for auditing the financial results prior to the bank's closure, raising questions about the reliability of their assessments.

The audits conducted included the financial statements as of December 31, 2024, with KPMG's findings stating that the financial reports accurately reflected Banco Master's financial position, performance, and cash flows in accordance with Brazilian accounting practices applicable to authorized institutions. However, the context of the bank's liquidation has led to scrutiny of these conclusions, prompting Senator Alves's call for accountability from the auditors about their processes and findings.

The implications of this request are significant as they not only reflect concerns over the transparency and accountability of financial audits in Brazil but also highlight the responsibilities of auditing firms to ensure the accuracy of their assessments. The outcome of this inquiry could influence public trust in financial institutions and their auditors, particularly in the wake of a bank's failure and the ensuing financial ramifications for stakeholders.