Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
with the Supervisory Board that we would report to them
misstatements identified during our audit above €8.75 million
(2016: €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.
We tailored the scope of our audit to ensure that we performed
sufficient work to be able to give an opinion on the financial
statements as a whole, taking into account the management
structure ofthe Group, the nature of operations of its
components, the accounting processes and controls, and
the markets in which the components ofthe Group operate.
In establishing the overall group audit strategy and plan, we
determined the type of work required to be performed at the
component level by the group engagement team and by each
component auditor.
Rabobank has an internal audit department (Audit Rabobank')
that performs operational audits, compliance audits, IT
audits, loan (valuation) audits, culture and behaviour audits
and financial statement audits. Audit Rabobank issued
audit opinions on the financial information of certain ofthe
components of Rabobank (for internal purposes only) to the
Supervisory Board, Audit Committee and Managing Board. We
considered, in the context of audit standard 610'Using the work
of internal auditors', whether we could make use ofthe work of
Audit Rabobank and we concluded that this was appropriate.
To arrive at this conclusion, we evaluated the competence,
objectivity as well as the 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 use ofthe work of
Audit Rabobank in our 2017 financial 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 or specific scope audit procedures to
achieve appropriate coverage on financial statement line items
in the financial statements.
In total, in performing these procedures, we achieved the
following coverage on the financial line items:
Total assets 91%
Profit before tax 91
Revenue 86%
None ofthe remaining components represented individually
more than 2% of total group assets, profit before tax or
revenues. For 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.
Group entities in the Netherlands included the significant
components Domestic Retail Banking Netherlands, WRR and
DLL, but also included Real Estate Group, FGH Bank, Obvion
and some other smaller components.The group engagement
team utilized the work of component teams for these entities.
For components in the USA, Australia/New Zealand, Brazil and
Ireland, we used component auditors who are familiar with the
local laws and regulations to perform the audit work. Where the
work was performed by component auditors, we determined
the level of involvement we needed to have in their audit work
to be able to conclude whether sufficient appropriate audit
evidence had been obtained as a basis for our opinion on the
financial statements as a whole.
In the current year the group engagement team visited the
Netherlands, USA, the UK, Brazil and Ireland at least once. We
met with the team from Australia and New Zealand when
they visited the Netherlands. During these visits the group
engagement team met with the component teams and with
local management.
The group consolidation, financial statement disclosures and a
number of complex items such as hedge accounting and certain
accounting matters are audited by the group engagement
team at the head office. By performing the procedures above at
components, combined with the additional procedures at
group level, we have obtained sufficient and appropriate audit
evidence regarding the financial information ofthe group.
These procedures in totality provided a basis for our opinion on
the consolidated financial statements.
Rabobank Annual Report 2017 - Company financial statements
270
