Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 443

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 443
---
performance of the quantitative assessment applying the percentage impact of each scenario that were independently
validated.

  F - 154  

  Consolidated Financial Statements in IFRS | Report of Independent Registered Public Accounting Firm  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────

We compared the macroeconomic variables projected by the Bank in the
future economic scenarios with independent third-party projections. For a selection of contracts with ECL calculated on an individual
basis, we assessed the assumptions and inspected the related documentation used by the Bank to determine the expected cash flows, including
those from collateral.

Evaluation of the measurement of provisions and the disclosure
of contingent liabilities tax and civil

As discussed in notes 2k, 4 and 22, to the consolidated financial
statements, the Bank is a defendant in tax and civil lawsuits for which it has provisions of R$ 7,457,160 thousand and R$ 7,827,251 thousand,
respectively.

The provisions for tax lawsuits include amounts related to the legality
and constitutionality of certain taxes. The provisions for civil lawsuits include certain indemnity claims for alleged moral and economic
damages arising from the Bank’s actions in the course of providing banking products and services, including the submission of information
about non-payment by debtors to credit bureaus, adjustments for inflation on savings account balances due to the implementation of economic
plans by the Federal Government and certain other specific civil lawsuits. In each case, the Bank applies judgment to determine the likelihood
of loss and estimate the amount involved.

We identified the evaluation of the measurement of provisions and
the disclosure of contingent liabilities for certain tax and civil lawsuits as a critical audit matter. The evaluation required challenging
auditor judgment due to the subjective nature of the estimates and judgments made by the Bank in determining the likelihood of loss and
estimating the amount of any such loss.

The following are the primary procedures we performed to address this
critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the evaluation
and measurement of the provisions and disclosures for tax and civil lawsuits. This included controls related to the assessment of information
received from external and internal legal advisors on tax and civil lawsuits.

We obtained and read letters received directly from the Bank’s
external legal counsel for certain tax lawsuits, and the documentation prepared by the internal legal counsel for certain civil lawsuits,
which included an assessment of the likelihood of loss and an estimate of the amount of such loss. We compared these assessments and estimates