What is auditing?

An audit is an examination and verification of a company’s financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.

Who needs auditing in the Netherlands?

Only medium and large companies are required by law to have their annual report audited by independent, qualified and registered Dutch auditors. Whether a company is medium or large is defined by three criteria (assets, turnover, and employees). In order to qualify for the medium or large categories, at least two of the three criteria must be met in two successive years.

The auditors’ report must include the following points: 

• Whether the financial statements provide information in accordance with the accounting principle generally accepted in the Netherlands and are an accurate representation of the financial position and result for the year. A proper judgment can be made as to the solvency and liquidity of the company
• Whether the management boards’ report meets the legal requirements; and
• Whether the adequate additional information has been provided.

Useful links

• Dutch accounting and auditing requirements
• Tax Consultants International
• Financial reporting in the Netherlands