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Ahold at a glance
Business review
I Governance
Financials
Investors
Ahold
Annual Report 2014
Our audit approach
Overview
We designed our audit by determining materiality and assessing the risks of material misstatement in the financial statements. In particular, we looked at where the Management Board made subjective judgements, for
example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. Apart from the key audit matters, which will be explained in the table below,
other points of focus in our audit included the valuation of investment property, inventory valuation, lease accounting and disclosures for stores and distribution centers, goodwill and other intangible assets impairment testing,
derivatives valuation and hedge accounting, uncertain tax positions and the estimates for loyalty programs and self-insurance liabilities. As in all of our audits, we also addressed the risk of management override of internal
controls, including evaluating whether there was evidence of bias by the Management Board that may represent a risk of material misstatement due to fraud.
Materiality
a Overall materiality: €45 million which represents 4.5% of profit before tax.
Key audit
mailers
Audit
scope
a Our audit covered all significant reporting units within the company.
a Each significant reporting unit is audited by component teams, based in the United States, the Netherlands, the Czech Republic and Portugal.
a The group engagement team audited amongst others the company financial statements, the consolidation, financial statement disclosures and complex or significant accounting
positions taken by the company.
a In addition, the group engagement team reviewed the quality and execution of the work performed by the component teams through a review of periodic reports and site visits.
Key audit matters
a Recognition of vendor allowances.
a SPAR acquisition - purchase price allocation.
a Impairment testing of store assets.
a Contingent liabilities relating to legal matters.
a Employee benefit plan measurement.
