Internal controls
a manner that is similar to how US-registered companies tend to apply Sarbanes-Oxley 404.
Rabobank Group is under no obligation to do this, since it is not registered with the US
Securities and Exchange Commission (SEC) and is therefore not subject to the related
regulations and oversight. Rabobank Group believes that internal financial reporting controls
increase the effectiveness of such reporting and offer opportunities to identify and rectify any
weaknesses at an earlier stage. This ensures Rabobank Group's high-quality financial reporting.
Rabobank Group uses internal controls to provide reasonable assurance that:
- transactions are recorded as necessary to permit the preparation of financial statements in
accordance with International Financial Reporting Standards as endorsed by the European
Union, and that income and expenditures are recognised only if approved by the
management;
- any unauthorised acquisition, use or disposal of assets that could have a material effect on
the financial statements is prevented or detected.
Rabobank Group's internal control framework is based on the framework developed by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). As set out in
the Executive Board Responsibility Statement, the Executive Board has concluded that the
internal risk management and control systems are adequate and effective, and provide
reasonable assurance that the financial reporting is free of material misstatement.
90 Annual Report 2012 Rabobank Group
