Appendix to our auditor's report on the
financial statements 2016 of Coöperatieve
Rabobank U.A.
Contents Foreword Management report Corporate governance
In addition to what is included in our auditor's report, we
have further set out in this appendix our responsibilities for
the audit of the financial statements and explained what
an audit involves.
The auditor's responsibilities for the audit of the
financial statements
We have exercised professional judgement and have
maintained professional scepticism throughout the audit
in accordance with Dutch Standards on Auditing, ethical
requirements and independence requirements. Our objectives
are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement,
whether due to fraud or error. Our audit consisted, among other
things, of the following:
Identifying and assessing the risks of material misstatement
of the financial statements, whether due to fraud or error,
designing and performing audit procedures responsive to
those risks, and obtaining audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the intentional override of internal control.
Obtaining an understanding of internal control relevant
to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company's
internal control.
Evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by the Executive Board.
Concluding on the appropriateness of the Executive Board's
use of the going concern basis of accounting, and based on
the audit evidence obtained, concluding whether a material
uncertainty exists related to events and/or conditions that
may cast significant doubt on the company's ability to
continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report and are made
in the context of our opinion on the financial statements as
a whole. However, future events or conditions may cause the
company to cease to continue as a going concern.
Consolidated Financial Statements Company Financial Statements Pillar 3
Evaluating the overall presentation, structure and content
of the financial statements, including the disclosures, and
evaluating whether the financial statements represent the
underlying transactions and events in a manner that achieves
fair presentation.
Considering our ultimate responsibility for the opinion on the
Bank's financial statements we are responsible for the direction,
supervision and performance of the group audit. In this
context, we have determined the nature and extent of the audit
procedures for components of the group to ensure that we
performed enough work to be able to give an opinion on the
financial statements as a whole. Determining factors are the
geographic structure of the group, the significance and/or risk
profile of group entities or activities, the accounting processes
and controls, and the industry in which the group operates.
On this basis, we selected group entities for which an audit
or review of financial information or specific balances was
considered necessary.
We communicate with the Supervisory Board regarding, among
other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We provide the Supervisory Board with a statement that we
have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with the Supervisory Board,
we determine those matters that were of most significance in
the audit of the financial statements of the current period and
are therefore the key audit matters. We describe these matters
in our auditor's report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare
circumstances, not communicating the matter is in the public
interest.
248 Rabobank Annual Report 2016