Dutch companies, irrespective of their type, must observe the accounting principles, as described in the Dutch Generally Accepted Accounting Principles(Dutch GAAP). Companies must prepare and submit relevant and reliable information about their financial situation and the evaluation of the presented information must be made by a registered Dutch auditor.
The current economic climate demands more careful assessment and planning and our Dutch specialists are able to perform audit actions in The Netherlands by applying a solid and independent judgment with integrity and professional expertise. Our consultants have a strong reputation in the field of audit services.
Audit requirements and classifications in the Netherlands
In the Netherlands a company is classified as small, medium or large in accordance with several criteria:
- the declared value of the balance sheet assets;
- the net turnover;
- the number of employees.
Small and medium sized companies have assets with the value between 4.40 m euros and 17.50 m euros, while large companies have assets that exceed the value of 17.50 m euros. In terms if employed individuals, small companies have less than 50 employees, medium companies have between 50 and 250 employees and large companies have 250 or more employees.
According to Dutch law, only medium and large companies must perform an annual report audit. This activity must be performed by an independent, qualified and accredited auditor. In most cases, the auditor is appointed following a shareholder's meeting. In some cases, this decision can be taken by default by the managing board or by the supervisory board.
The audit process in the Netherlands
The appointed auditor reports the evaluation to the managing and supervisory boards of the company. After taking notice of all findings in the auditor's report, these bodies can determine and/or approve the company's financial statements. A voluntary audit can be performed by companies not required by law to perform such an action.
The auditor's report will include information about:
- the management board's reports and if they meet the legal requirements;
- the adequate additional information and if this information is in accordance with the reality;
- all the company's financial statements and if they have been provided in accordance with the generally accepted accounting principles; these financial statements must reflect the accurate yearly financial situation of the company.
Users of financial statements are expected to be provided with a correct and complete audit report and an assurance on the financial statements of the company. The auditor may be liable if issuing an audit report incorrectly. The audit report is the final step of the entire audit process.
According to Dutch law, companies must observe the annual publication requirements and deadlines. Our team of auditors and accountants in the Netherlands can provide complete and professional audit services. You can contact our accounting firm in the Netherlands for detailed information.
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