pwc
Materiality
About this Chairman's Corporate Consolidated Financial Company Financial
Report Foreword Management Report Appendices Governance Statements Statements
As in all of our audits, in assessing the risks of material misstatement in the financial statements,
we also addressed the risk of management override of internal controls, including evaluating whether
there was evidence of bias by the managing board that may represent a risk of material misstatement
due to fraud.
We ensured that the audit teams, both at group and at component levels, collectively contain the
appropriate skills and competences which are needed for the audit of a bank. We therefore included
specialists in the areas of IT, taxation and hedge accounting and experts in the areas of valuation of
real estate, financial instruments and employee benefits in our team.
The outline of our approach was as follows:
Materiality
Overall materiality: €195 million
Audit scope
We conducted audit work on 19 components.
Site visits and or meetings with the component teams by the group
engagement team were carried out in the following locations - the
Netherlands, USA, Ireland and Brazil. We met with the audit partner
and local management team.
Audit coverage: 91% of total assets, 91% of profit before tax and 87% of
revenues.
Key audit matters
Impairment allowances on loans and advances to customers
Valuation of financial instruments at fair value
Litigation, regulatory and client care exposures
Design and effectiveness of IT General controls
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'.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall materiality for the financial statements as a whole as set out in the table below.
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, both individually and in aggregate, on the financial
statements as a whole and on our opinion.
Materiality H
Audit scope
Key audit
matters
Coöperatieve Rabobank UA. - EH44X5NCPJUJ-1288894667-935
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