pwc
The group audit focused on the three individually financially significant components: Domestic Retail
Banking Netherlands (not including Obvion and other associated entities), Wholesale Banking
Netherlands and Treasury (WRR) and De Lage Landen (DLL). We further subjected 6 components for
full scope audit procedures or an audit of certain specific account balances only, as they include
significant or higher risk areas due to estimation uncertainty, higher fraud risk and complex items
such as hedge accounting. Additionally, we selected to components for full scope audit procedures or
an audit of certain specific account balances only, to achieve additional coverage on financial line items
in the consolidated financial statements. In total, in performing these procedures, we achieved the
following coverage on the financial line items:
None of the remaining components represented individually more than 2% of total group assets, profit
before tax or revenues. For those 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 components in the Netherlands include the significant components Domestic Retail Banking
Netherlands, WRR and DLL, but also include Real Estate Group, Obvion, hedge accounting and some
other smaller components. The group engagement team utilizes 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 component auditors performed the work, we determined the level of involvement we needed to
have in their audit work to be able to conclude whether sufficient and appropriate audit evidence had
been obtained as a basis for our opinion on the financial statements as a whole.
We issued instructions to the component audit teams in our audit scope. These instructions included
amongst others our risk analysis, materiality and scope of the work. We explained to the component
audit teams the structure of the group, the main developments that are relevant for the component
auditors, the risks identified, the materiality levels to be applied and our global audit approach. We
had individual calls with each of the in-scope component audit teams during the year including upon
the conclusion of their work. During these calls, we discussed the significant accounting and audit
issues identified by the component auditors, the reports of the component auditors, the findings of
their procedures and other matters, which could be of relevance for the consolidated financial
statements.
In the current year, the group audit team visited the component in the Netherlands, USA, Brazil and
Ireland at least once given the importance of the judgements, such as the impairment allowances on
loan and advances to customers and the valuation of the loan and advances mandatorily at fair value,
or significance to the group audit. During these visits, the group engagement team met with the
component teams (including audit partner), discussed the audit approach in detail and met with local
management. For the significant components and the USA, we reviewed selected working papers of the
component auditors. The group team met the local Australian and New Zealand management during
their visit in the Netherlands.
Coöperatieve Rabobank UA. - EH44X5NCPJUJ-1288894667-935
Page 5 of 17
About this Chairman's Corporate Consolidated Financial Company Financial
Report Foreword Management Report Appendices Governance Statements Statements
Total assets
91%
Profit before tax
91%
Revenue
87%
