pwc Overall group €195 million (2017: €181 million) materiality Basis for determining We used our professional judgement to determine overall materiality. As a basis for materiality our judgement, we used 5% of profit before tax. Rationale for We used profit before tax as the primary benchmark, a generally accepted auditing benchmark applied practice, based on our analysis of the common information needs of users of the financial statements. On this basis, we believe that profit before tax is an important metric for the financial performance of the Bank and is widely used within the indu stry. Component To each component in our audit scope, we allocate, based on our judgement, materialitg materiality that is less than our overall group materiality. The range of materiality allocated across components was between €25.5 million and €75 million. We also take misstatements and/or possible misstatements into account that, in our judgement, are material for qualitative reasons. Examples of areas that we focussed on due to qualitative reasons are the accuracy and completeness of the fair value disclosure, the disclosure around the implementation of IFRS 9, the legal, regulatory and client care exposure and the remuneration of the Supervisory Board and the Managing Board. We agreed with the Supervisory Board that we would report to them misstatements identified during our audit above €8.75 million (2017: €8.75 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 of the Group, the nature of operations of its components, the accounting processes and controls, and the markets in which the components of the 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, audits on internal control on financial reporting and financial statement audits. Audit Rabobank issued audit opinions on the financial information of certain of the 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 of the 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 of the work of Audit Rabobank in our 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. Coöperatieve Rabobank UA. - EH44X5NCPJUJ-1288894667-935 Page 4 of 17 About this Chairman's Corporate Consolidated Financial Company Financial Report Foreword Management Report Appendices Governance Statements Statements

Rabobank Bronnenarchief

Annual Reports Rabobank | 2018 | | pagina 246