Inhoudsopgave Voorwoord Bestuursverslag Corporate governance
Materiality
The scope of our audit is influenced by the application of
materiality which is further explained in the section 'Our
responsibilities for the audit of the financial statements'.
We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us
to determine the nature, timing and extent of our audit
procedures on the individual financial statement line items
and disclosures and to evaluate the effect of identified
misstatements on our opinion.
Based on our professional judgement, we determined
materiality for the financial statements as a whole as follows:
Overall group materiality EUR 135 million
Benchmark applied 5% of profit before tax
Rationale for benchmark This benchmark is a generally accepted
auditing practice, based on our analysis of the
common information needs of users of the
financial statements. On this basis we believe
that profit before tax is an important metric for
the financial performance of the company.
Component materiality To each component in our audit scope, we
allocate, based on our judgement, materiality
that is less than our overall group materiality.
The range of materiality allocated across
components was between EUR 18.5 million and
EUR 45 million.
Next to the quantitative considerations as outlined above
we have also focused in our audit on the accuracy and
completeness of the fair value disclosure, which is an example
of taking into account misstatements and/or possible
misstatements, that in our judgement, are material for
qualitative reasons.
We agreed with the Supervisory Board that we would report
to them misstatements identified during our audit above
EUR 6.25 million as well as misstatements below that amount
that, in our view, warranted reporting for qualitative reasons.
The scope of our group audit
Coöperatieve Rabobank U.A. is the parent company of a group
of entities. The financial information of this group is included
in the consolidated financial statements of Coöperatieve
Rabobank U.A.
Rabobank has an internal audit department ('Audit Rabobank')
that performs operational audits, compliance audits, IT audits,
loan (valuation) audits, culture and behaviour audit and a full
financial statement audit. Audit Rabobank issues an audit
opinion on the financial statements of Rabobank (for internal
purposes only) to the Supervisory Board, Audit Committee and
Executive Board. We considered, in the context of audit standard
610 'Using the work of internal auditors', whether we could
Consolidated Financial Statements Company Financial Statements Pillar 3
make use of the work of Audit Rabobank and we concluded
that this was appropriate. To arrive at this conclusion, we
evaluated the competence, objectivity and level of systematic
and disciplined approach applied by Audit Rabobank, and
more specific the financial audit team of Audit Rabobank.
Subsequently we developed a detailed approach and model to
make useofthe work of Audit Rabobankin our2016financial
statement audit. We were substantially and independently
involved in the higher risk areas and or in areas or procedures
that require significant judgement. During the audit process
we worked closely with Audit Rabobank, had frequent status
meetings and reviewed and reperformed some of their work
which confirmed our initial assessment and reliance approach.
The group audit focused on the significant components:
Domestic Retail Banking Netherlands (not including Obvion and
other associated entities), Wholesale Banking Netherlands and
Treasury (WRR) and De Lage Landen (DLL).
These three components were subject to audits of their
complete financial information as those components are
individually financially significant to the group. Additionally,
17 components were selected for full scope audit procedures
to achieve appropriate coverage on financial statement line
items in the financial statements. And another six components
were subjected to specific audit procedures on certain financial
statement line items only to achieve appropriate overall
coverage on financial statement line items.
Group entities in the Netherlands included the significant
components Domestic Retail Banking Netherlands, WRR and
DLL, but also included Real Estate Group, LGH Bank, Obvion
and some other smaller components.The group engagement
team utilized the work of component teams for these entities.
Lor components in the USA, Australia, Brazil, the UK, Ireland,
Hong Kong and Indonesia, we used component auditors who
are familiar with the local laws and regulations to perform the
audit work.
In total, in performing these procedures, we achieved the
following coverage on the financial line items:
Total assets 97%
Profit before tax 94%
Revenue 94%
None of the remaining components represented individually
more than 1% of total group assets, profit before tax or
revenues. Lor these remaining components we performed,
amongst other procedures, analytical procedures to corroborate
our assessment that there were no significant risks of material
misstatements within these components.
247 Independent auditor's report