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Unofficial translation for information purposes. In case of differences between this
translation and the Dutch text, the Dutch text is leading.
Standard 702N
Additions regarding the reporting on a complete
set of general purpose financial statements at a
public interest entity
December 2014
Standard 702N
Additions regarding the reporting on a complete set of
general purpose financial statements at a public interest entity
Introduction
Scope of this Standard
1 This Standard1 deals with the form and content of the auditor’s report that is issued as result of an
audit of a complete set of general purposes financial statements for a public interest entity in
accordance with article 393 of Book 2 of the Dutch Civil Code. (Ref: Para. A1)
2 This Standard provides additions to Standards 260, 700, 705 and 706. Where a requirement in
this Standard contradicts with a requirement in the Standards mentioned, the requirement in this
Standard prevails. (Ref: Para. A2)
3 This Standard aims on providing public interest entities in the Netherlands with a more extensive
auditor’s report on financial statements for periods ending on or after December 15, 2014. The
premises for this more extensive auditor’s report are:
 the proposed ISAs that were submitted to the PIOB as a result of the IAASB meeting in
September 2014.
 elements from Article 10 of the “REGULATION (EU) No 537/2014 OF THE EUROPEAN
PARLIAMENT AND OF THE COUNCIL of 16 April 2014 on specific requirements regarding
statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC”;
 specific Dutch elements based on discussions with politicians or other stakeholders; and
 developments in the United Kingdom where since 2013 an obligation exists regarding a more
extensive auditor’s report for listed entities. (Ref: Para. A3)
4 This Standard is applicable for auditor’s reports on a complete set of general purpose financial
statements of a public interest entity. This Standard may be applied for auditor’s reports of other
organisations. If this Standard is applied for the auditor’s report of other entities, then all
requirements should be applied mandatory, with the exception of the requirements in paragraphs
16, 17, 18 until 24 and 29.
Effective date
5 For the effective date reference is made to the final provisions 2.
Objectives
6 The auditor’s objectives are to:
a Structuring the report in such a way that the most important matters are mentioned first;
b Provide a better understanding of his audit amongst others by disclosing key audit matters,
materiality, scope of the group audit in addition to the requirements regarding the auditor’s
report as required in Standard 700 (Ref: Para. A3);
c Reflect the specific situation of the entity in the auditor’s report.
Definitions
7 Key audit matters - Matters that, in the auditor’s professional judgment, were of most significance
in the audit of the financial statements of the current period. Key audit matters are selected from
matters communicated with those charged with governance.
Requirements
Auditor’s Report on a Complete Set of General Purpose Financial Statements at a Public
Interest Entity
8 The auditor’s report of public interest entities shall be in writing and shall contain the following
elements: (Ref: Para. A4)
1
This Standard is written in US English.
Reference is made to the final provisions of the NV COS. In these provisions shall be stated that the auditor’s report is
mandatory for periods ending on or after December 15, 2014.
2
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Standard 702N
Additions regarding the reporting on a complete set of
general purpose financial statements at a public interest entity
Title
9 The auditor shall give the auditor’s report a title that clearly indicates that it is the report of an
independent auditor.
Addressee
10 The auditor shall address the auditor’s report as required by the circumstances of the
engagement.
Opinion
11 The auditor shall include in the auditor’s report a first section with the heading “Opinion”.
Paragraph Material Uncertainty Related to Going Concern
12 If there is a material uncertainty related to going concern, the auditor shall include a separate
paragraph “Material Uncertainty Related to Going Concern” directly after the opinion.
Basis for Opinion
13 The auditor shall include in the auditor’s report a section titled “Basis for Opinion” directly after the
section “Opinion” and -if applicable- after the section “Material Uncertainty Related to Going
Concern”.
14 The auditor shall confirm and explain his independence in the auditor’s report .
Basis for Modification Paragraph
15 When there is a modified opinion, the auditor shall amend the heading “Basis for Opinion” by the
heading “Basis for Qualified Opinion”, “Basis for Adverse Opinion”, or “Basis for Disclaimer of
Opinion”, as appropriate and include a description of the matter giving rise to the modification.
Materiality
16 The auditor shall state in the auditor’s report the materially applied for the financial statements as
a whole and shall explain how he determined this. The auditor shall describe that he considers
quantitative and qualitative aspects of materiality.
Scope of the Group Audit
17 The auditor shall state in the auditor’s report how he conducted the audit of components, as
appropriate.
Basis for Modification Paragraph
Key Audit Matters
18 Communicating key audit matters in the auditor’s report is in the context of the auditor having
formed an opinion on the financial statements as a whole. Communicating key audit matters in the
auditor’s report is not:
a A substitute for disclosures in the financial statements that the applicable financial reporting
framework requires management to make, or that are otherwise necessary to achieve fair
presentation;
b A substitute for the auditor expressing a modified opinion when required by the circumstances
of a specific audit engagement in accordance with Standard 705;
c A substitute for reporting in accordance with Standard 570 when a material uncertainty exists
relating to events or conditions that may cast significant doubt on an entity’s ability to continue
as a going concern; or
d A separate opinion on individual matters.
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Standard 702N
Additions regarding the reporting on a complete set of
general purpose financial statements at a public interest entity
19 The auditor shall state in the introductory language in the section “Key Audit Matters”of the
auditor’s report that:
a Key audit matters are those matters that, in the auditor’s professional judgment, were of most
significance in the audit of the financial statements; and
b These matters were addressed in the context of the audit of the financial statements as a
whole, and in forming the auditor’s opinion thereon, and the auditor does not provide a
separate opinion on these matters.
20 The auditor shall determine, from the matters communicated with those charged with governance,
those matters that required significant auditor attention in performing the audit. In making the
determination of key audit matters, the auditor shall take into account the following:
a Areas of higher assessed or significant risks of material misstatement due to fraud or error;
b Significant auditor judgments relating to areas in the financial statements that involved
significant management judgment, including accounting estimates with a high estimation
uncertainty.
c The effect on the audit of significant events or transactions that occurred during the period.
21 The auditor shall describe each key audit matter using an appropriate subheading under the
heading “Key Audit Matters”.
22 The auditor shall describe the following elements relating to a key audit matter:
 A description of the key audit matter;
 A summary of audit procedures performed;
 Where relevant, key observations relating to the key audit matters;
 Where relevant, reference to the notes or disclosure in the annual report.
23 If the auditor determines, depending on the facts and circumstances of the entity and the audit,
that there are no key audit matters to communicate, the auditor shall include a statement to this
effect in a separate section of the auditor’s report under the heading “Key Audit Matters”.
24 The auditor shall describe each key audit matter in the auditor’s report unless:
a Law or regulation precludes public disclosure about the matter; or
b In extremely rare circumstances, the auditor determines that the matter should not be
communicated in the auditor’s report, because the adverse consequences of doing would
reasonably be expected to outweigh the public interest benefits of such communication. This
shall not apply if the entity has publicly disclosed information about the matter.
Emphasis of Matter Paragraphs and Other Matter Paragraphs
25 If there is an emphasis of matter paragraph or an other matter paragraph, this paragraph will be
included in a separate section.
Responsibilities of Management and Those Charged with Governance
26 The auditor shall describe in the auditor’s report the responsibilities of management and those
charged with governance. At least the following is addressed in this section:
a Responsibility for the preparation of the financial statements including internal control
b Responsibility for the preparation of the financial statements using the going concern basis of
accounting and disclosure of material uncertainties.
Auditor’s Responsibilities
27 The auditor shall describe in the auditor’s report the responsibilities of the auditor. A part of this
description may be included in an appendix to the auditor’s report or reference may be made to
the website of the NBA. In this description at least the following is addressed:
a Responsibilities for the audit and the opinion;
b Stating that a reasonable level of assurance provides a high level of assurance, but no
absolute level of assurance;
c Stating that the auditor exercises professional judgment and maintains professional scepticism.
d Describe an audit by stating that the auditor’s responsibilities are:
i To identify and assess the risks of material misstatement including fraud and perform audit
procedures ;
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Standard 702N
Additions regarding the reporting on a complete set of
general purpose financial statements at a public interest entity
ii To obtain an understanding of internal control;
iii To evaluate the accounting policies;
iv To conclude on the appropriateness of the going concern basis of accounting. Reporting on
material uncertainties;
v To evaluate the presentation of the financial statements;
vi To evaluate the fair presentation (‘true and fair view’) of the financial statements;
vii To Communicate with those charged with governance;
viii To confirm compliance with the ethical requirements;
ix To discuss and determine the key audit matters.
Other Reporting Responsibilities
28 The auditor shall address other reporting responsibilities in a separate section.
29 The auditor shall address at least the following subjects in the auditor’s report:
 By whom the auditor was appointed;
 Date of the appointment and the period of total uninterrupted engagement.
Signature of the Auditor
30 The auditor shall mention his name in the auditor’s report and sign the auditor’s report.
Date of the Auditor’s Report
31 The auditor shall date the auditor’s report.
Auditor’s Address
32 The auditor’s report shall name the location in the jurisdiction where the auditor practices.
Disclaimer of Opinion: No Key Audit Matters and Modification of the Auditor’s Report
33 The auditor shall not include key audit matters in the auditor’s report if the auditor disclaims an
opinion.
34 When the auditor disclaims an opinion due to an inability to obtain sufficient and appropriate audit
evidence, the auditor shall amend the introductory paragraph and the description of the auditor’s
responsibility in accordance with Standard 705 paragraph 27. In this case, paragraph 27 of this
Standard is not applicable.
Application and Other Explanatory Material
A1 The complete set of general purpose financial statements mentioned in this Standard are referred
to as ”de jaarrekening” in the Dutch Civil Code. (Ref: Para. 1)
A2 This Standard is a temporary Standard. As soon as the revised ISA’s 260, 570, 700, 705 and 706
and the new ISA 701 of the IAASB have been incorporated in the NV COS, this Standard will be
withdrawn or modified. This will probably happen by the end of 2015 for periods ending on or after
December 15, 2015.
A3 With this standard an early adoption of the new more extensive auditor’s report is realized in the
Netherlands. Alignment has been sought with the developments at IAASB and the EU.
Furthermore, specific Dutch aspects are added based on the discussions in politics and the
regulations in the United Kingdom. While applying this standard, auditors are advised to take note
of the proposed ISAs 700, 701, 570 and 705 of IAASB and ISA 700 (UK and Ireland) of the FRC.
The NBA will publish the information identified to be relevant on the website. (Ref: Para. 3)
.
Illustration of Auditor’s Report
A4. The appendix contains an illustration of an auditor’s report.
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Standard 702N
Additions regarding the reporting on a complete set of
general purpose financial statements at a public interest entity
Appendix
Example of independent auditor’s report on financial statements of public interest entities for periods
ending on or after December 15, 2014
Unofficial translation (US version)
For purposes of this illustrative auditor’s report, the following circumstances are assumed:

The period ends on December 31;

There is a group audit;

The consolidated financial statements are prepared in accordance with EU-IFRS; the company financial
statements are prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code;

There is a company;

There is a Supervisory Board that acts as principal of the auditor.
There are various colour blocks used in this text:
-blue: standardised text;
-yellow: text that may be made specific;
-green: text that can be located in an Appendix to the auditor’s report or reference can be made to the NBA
website: www.nba.nl/standardtexts-auditorsreport .
NB THIS AUDITOR’S REPORT SHOULD BE ADAPTED TO THE SPECIFIC SITUATION OF THE COMPANY
IN ACCORDANCE WITH STANDARD 702N PARAGRAPH 6C
INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS
To: The Shareholders and Supervisory Board of ABC N.V.
Report on the Audit of the Financial Statements 201X
Opinion
We have audited the accompanying financial statements 201X of ABC N.V. (the company), based in (town/city).
The financial statements include the consolidated financial statements and the company financial statements.
In our opinion:
 The consolidated financial statements give a true and fair view of the financial position of ABC N.V. (name of
the company) on December 31, 201X its financial and its cash flows in the year 201X in accordance with
International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of
Book 2 of the Dutch Civil Code.
 The company financial statements give a true and fair view of the financial position of ABC N.V. (name of the
company) as at December 31, 201X and of its financial performance for the year 201X in accordance with
Part 9 of Book 2 of the Dutch Civil Code.
The consolidated financial statements comprise:
1. the consolidated statement of financial position as at December 31, 201X;
2. the following statements for 201X: consolidated statements of profit and loss and other comprehensive
income, changes in equity and cash flows for the year then ended; and
3. notes comprising a summary of the significant accounting policies and other explanatory information.
The company financial statements comprise:
1. the company balance sheet on December 31, 201X;
2. the company profit and loss account for the year 201X; and
3. notes comprising a summary of the accounting policies and other explanatory information.
Basis for Our Opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our
responsibilities under those standards are further described in the “Our responsibilities for the audit of the
financial statements” section of our report.
We are independent of ABC N.V. in accordance with the Verordening inzake de onafhankelijkheid van
accountants bij assurance-opdrachten (ViO) and other relevant independence regulations in the Netherlands.
Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Materiality
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Standard 702N
Additions regarding the reporting on a complete set of
general purpose financial statements at a public interest entity
Misstatements can arise from fraud or error and will be considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements. The materiality affects the nature, timing and extent of our audit procedures and the
evaluation of the effect of identified misstatements on our opinion.
Based on our professional judgement we determined the materiality for the financial statements as a whole at
EUR X. The materiality is based on … (% to be filled in for the relevant benchmark e.g. profit, turnover or other
criteria). We have also taken into account misstatements and/or possible misstatements that in our opinion are
material for the users of the financial statements for qualitative reasons We agreed with the Supervisory Board
that misstatements in excess of EUR Y, which are identified during the audit, would be reported to them, as well
as smaller misstatements that in our view must be reported on qualitative grounds.
Scope of the Group Audit
ABC N.V. is at the head of a group of entities. The financial information of this group is included in the
consolidated financial statements of ABC N.V.
Because we are ultimately responsibility for the opinion, we are also responsible for directing, supervising and
performing the group audit. In this respect we have determined the nature and extent of the audit procedures to
be carried out for group entities. Decisive were, the size and/or risk profile of the group entities or operations. On
this basis, we selected group entities for which an audit or review had to be carried out on the complete set of
financial statements or specific items.
The group audit mainly focused on significant group entities … [explain what this entails e.g. significant
components as defined in Standard 600. For example components in specific countries, components with
significant risks relating to valuation or complex activities]. We have performed audit procedures ourselves at
group entities aaa and bbb. When auditing entity ccc, we have used the work of other auditors. At the other
group entities we have performed review procedures or specific audit procedures.
By implementing the procedures mentioned above- at group entities, together with additional procedures at
group level, we have been able to obtain sufficient and appropriate audit evidence about the group’s financial
information to provide an opinion about the consolidated financial statements.
Our Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements. We have communicated the key audit matters to the Supervisory Board. The key audit
matters are not a comprehensive reflection of all matters discussed.
These matters were addressed in the context of our audit on the financial statements as a whole and in forming
our opinion thereon and we do not provide. a separate opinion on these matters.
Descriptions for key audit matters contain the following elements:
 A description of the key audit matter;
 A summary of audit procedures performed;
 If relevant, key observations relating to key audit matters;
 If relevant, references to information or notes in the financial statements.
Responsibilities of Management and the Supervisory Board for the Financial Statements
Management is responsible fo rthe preparation and fair presentation of the financial statements in accordance
with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code, and for the preparation of the management board
report in accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for
such internal control as management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the company’s ability to continue
as a going concern. Based on the financial reporting frameworks mentioned, management should prepare the
financial statements using the going concern basis of accounting unless management either intends to liquidate
the company or to cease operations, or has no realistic alternative but to do so. Management should disclose
events and circumstances that may cast significant doubt on the company’s ability to continue as a going
concern.
The Supervisory Board is responsible for overseeing the company’s financial reporting process.
Our Responsibilities for the Audit of the Financial Statements
Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and
appropriate audit evidence for our opinion.
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Standard 702N
Additions regarding the reporting on a complete set of
general purpose financial statements at a public interest entity
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not have
detected all errors and fraud.
We have exercised professional judgment and have maintained professional skepticism throughout the audit, in
accordance with Dutch Standards on Auditing, ethical requirements and independence requirements.
Our audit included e.g.:
 Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud
or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
 Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the company’s internal control.
 Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
 Concluding on the appropriateness of management’s use of the going concern basis of accounting, and
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause an the company to cease to continue as a going concern.
 Evaluating the overall presentation, structure and content of the financial statements, including the
disclosures; and
 Evaluating whether the financial statements represent the underlying transactions and events in a manner
that achieves fair presentation.
We communicate with the Supervisory Board regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant findings in internal control that we identify during
our audit.
We provide the Supervisory Board with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Supervisory Board, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, not communicating the matter is in the public interest.
Report on Other Legal and Regulatory Requirements
Report on the management board report and the other information
Pursuant to legal requirements under Section 2:393 sub 5 at e and f of the Dutch Civil Code (concerning our
obligation to report about the management board report and other data), we declare that:
 We have no deficiencies to report as a result of our examination whether the management board report, to
the extent we can assess, has been prepared in accordance with Part 9 of Book 2 of this Code, and whether
the information as required under Section 2:392 sub 1 at b-h has been annexed.
 Further we report that the management board report, to the extent we can assess, is consistent with the
financial statements as required by Section 2:391 sub 4 of the Dutch Civil Code.
Engagement
We were engaged by the Supervisory Board as auditor of ABC N.V. on [dated-mm-yy], as of the audit for year X
and have operated as statutory auditor ever since that date.
Place, date
... (Name of Audit firm)
... (Name statutory auditor and signature)
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