Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
Risk
Other provisions (see note 4.10,23 and 24)
At 31 December 2015, provisions amount to EUR 993 million.
Other provisions are accrued for regarding restructurings, uncertainties
associated with legal, tax and compliance risks. IFRS provide specific
criteria determining the point in time other provisions must be accrued for.
Assessments are made both on likelihood of certain risks and the possibility
to estimate the amounts involved. Especially the outcome of legal procedures
might be very difficult to predict. Procedures have been developed to cope
with the uncertainties, including involvement of internal and external experts.
Nevertheless, judgments regarding other provisions inherently are (highly)
uncertain and best estimates regarding other provisions might change over
time.
Our audit response
We assessed and tested the design and operating effectiveness of the controls
related to the timely recognition and measurement of other provisions. We included
(tax) specialists in our team to assess risks and audit the proper application of IFRS.
Judgments were discussed with management and challenged based on internal and/
or external information available. We assessed the design and operating effectiveness
of the controls over related disclosures. Finally, we assessed the completeness and
accuracy of the disclosures relating to other provisions to assess compliance with
disclosure requirements included in EU-IFRS.
Given the uncertainty of provisions and the unpredictability of final outcomes,
we determined this to be a significant item for our audit.
Reliability and continuity of electronic data processing
Rabobank Group is dependent on the IT-infrastructure for the continuity of
their business processes. Rabobank Group invested in the improvement of
IT-hardware, systems and processes, focused on the increased effectiveness
of the IT-infrastructure and the reliability and continuity of electronic data
processing.
We tested IT- security, change management and application controls embedded in
Rabobank's key processes. We assessed the reliability and continuity of electronic
data processing only to the extent necessary within the scope of the audit of the
annual accounts. We included IT-auditors in our audit-team. Our work consisted of
assessing the developments in the IT-infrastructure and analysing the impact on the IT-
organisation. Additionally, we tested the design and operating effectiveness of relevant
internal controls related to IT- systems and processes.
Consolidated financial statements as part of the (complete)
financial statements
The (complete) financial statements of Rabobank 2015 include
the 'Consolidated financial statements 2015 Rabobank Group'
and the 'Financial statements 2015 Rabobank'. For a proper
understanding of the financial position and result the
consolidated financial statements must be considered
in connection with the company financial statements.
On 17 February 2016 we issued a separate auditor's report on
the company financial statements.
Responsibilities of management and the Supervisory Board
for the consolidated financial statements
Management is responsible for the preparation and fair
presentation of the consolidated financial statements in
accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil
Code, and for the preparation of the management board report
in accordance with Part 9 of Book 2 of the Dutch Civil Code.
Furthermore, management is responsible for such internal
control as management determines is necessary to enable the
preparation of the consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
As part of the preparation of the consolidated financial
statements, management is responsible for assessing
Rabobank's ability to continue as a going concern. Based on
the financial reporting frameworks mentioned, management
should prepare the consolidated financial statements using the
going concern basis of accounting unless management either
intends to liquidate Rabobank or to cease operations, or has no
realistic alternative but to do so. Management should disclose
events and circumstances that may cast significant doubt
on Rabobank's ability to continue as a going concern in the
consolidated financial statements.
The Supervisory Board is responsible for overseeing Rabobank's
financial reporting process.
Our responsibilities for the audit of the consolidated
financial statements
Our objective is to plan and perform the audit assignment in
a manner that allows us to obtain sufficient and appropriate
audit evidence for our opinion.
Our audit has been performed with a high, but not absolute,
level of assurance, which means we may not have detected all
errors and fraud.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions
of users taken on the basis of these consolidated financial
statements.The materiality affects the nature, timing and extent
of our audit procedures and the evaluation of the effect of
identified misstatements on our opinion.
248 Rabobank Annual Report 2015
