When a group entity is audited by another accountant, we will investigate whether we could make use of their work. We will make an initial assessment based on local relevant laws and regulations and professional rules, including ethical rules and rules regarding independence. Preferably, we make as much use as possible of the component accountants. This is not only from an efficiency point of view, but also because they have more insight into what is happening in a particular country. Since we as group auditor have undivided responsibility, it is important that we can manage the component accountants in a timely manner. An important part of good management is the timely sending of clear group instructions.

Clear instructions

We provide component accountants with extensive instructions stating, among other things:

• the risks we have identified for the group;
• specific items, processes or transaction flows on which activities are needed;
• requirements regarding materiality and reporting;
• planning, documentation requirements and communication agreements.

Continuous communication

We maintain active contact through consultation moments, digital data rooms and joint planning agreements. This ensures that everyone has the same insights and expectations.

Assessment of their activities

We evaluate:

• the nature and quality of the work performed;
• the findings and any shortcomings;
• the impact of this on the group risks and the consolidation.

In principle, we will always do this on the basis of an extensive file review. The audit team will visit the component accountant and perform a file review on location.

If necessary, we will request the client to have the component accountants perform additional work or we will perform additional work ourselves.