Integrating audit, tax and legal strategies in Latin America:  A smarter way to build trust

In today’s fast-changing business environment, the traditional borders between audit, tax, and legal advisory are disappearing. Clients no longer want separate answers, they expect integrated solutions. In Latin America (as in many places around the world), the complex nature of regulatory systems and business structures, especially when dealing across borders, has made this multidisciplinary approach essential to ensure compliance, sustainability, and adaptability.

My experience shows that connecting audit and tax perspectives early in the process can lead to a significant increase in the quality and relevance of an engagement. When auditors understand the legal structure behind transactions, and especially when tax teams understand the audit implications of estimates or intercompany arrangements, the result is, simply put, better advice.

An example where early coordination between auditors and legal advisors helps anticipate risks is the audit of multinational subsidiaries, in which transfer pricing, capitalisation events, or related party disclosures are usually critical. This integration enables management to make faster and more confident decisions, minimising last-minute surprises and unnecessary costs.

Across various Latin American jurisdictions, aligning audit and tax strategies has also proven decisive when dealing with deferred tax recognition, thin capitalisation rules, and the reconciliation of fiscal results under IFRS and local generally accepted accounting principles (GAAP). By linking these analyses early in the audit cycle, our teams have helped clients identify opportunities to optimise cash flow, reduce tax liabilities, and strengthen the audit trail for regulatory reviews – particularly in industries subject to transfer pricing scrutiny.

Technology has made this collaboration even more powerful. AI and big data tools for data analytics, document review, and consistency checks now allow mid-sized firms to deliver insights comparable to global firms with greater agility and personal attention. What once took days of manual reconciliation can now be done in hours, freeing professionals to focus on what truly matters: professional judgment and building client trust.

Ultimately, the role of the auditor is evolving from verifier to strategic advisor, someone who not only ensures accuracy but also raises transparency, efficiency, and long-term confidence in organisations. This evolution demands curiosity, cross-disciplinary thinking, and a deep sense of responsibility to both clients and the public interest.

Modern audit quality depends not only on standards and controls but also on the ability to connect disciplines, teams, and perspectives. In order to transition from a simple service provider to a true trusted advisor, audit firms must master the disciplines of audit, tax and law, and combine them in their advice.

As the GGI network continues to strengthen collaboration among members, the future of auditing will belong to those who integrate knowledge across borders and specialties. In Latin America and beyond, this multidisciplinary mindset is not merely an advantage, it is the new definition of excellence.

---

Prof Sergio Guerrero Rosas, Managing Director at Guerrero y Santana, has over 25 years’ experience advising companies from SMEs to multinationals, as well as individuals, on tax and estate planning. He is also Global Vice Chair of the GGI Trust & Estate Planning (TEP) Practice Group.