Other information
continued
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Where the work was performed by component auditors, we determined the level of involvement we needed to have in the audit work at
those components to be able to conclude whether sufficient appropriate audit evidence had been obtained as a basis for our opinion on the
consolidated financial statements as a whole. The group engagement team directed the planning, reviewed the results of the work undertaken by
component auditors and assessed and discussed the findings with the component auditors during conference calls and site visits. In the current
year, the group engagement team visited local management and the component auditors at the new Delhaize in scope locations in Belgium, the
USA and Greece as well as the Ahold significant locations in the USA, the Netherlands and Switzerland.
The scope of our group audit
Koninklijke Ahold Delhaize N.V. is the parent company of a group of entities. The financial information of this group is included in the consolidated
financial statements of Koninklijke Ahold Delhaize N.V.
Five components were subject to audits of their complete financial information as those components are individually significant to the Group.
These components include the retail operations at Ahold USA, Delhaize America, and the Netherlands, Delhaize Belgium as well as the Global
Support Office activities in the Netherlands (which includes financing activities in Switzerland). We further performed certain audit procedures at
the Czech Republic and Greek retail operations, the Global Support Office activities in the USA, bol.com and at the insurance captives located in
the USA, Ireland and Curacao in order to achieve appropriate coverage on financial statement line items in the consolidated financial statements.
None of the remaining components represented more than 2% of total Group revenue or 5% of total Group assets. For those remaining components
we performed, among other things, analytical procedures to corroborate our assessment that there were no significant risks of material
misstatements within those components.
The Global Support Office activities in the Netherlands (which includes financing activities in Switzerland), Group consolidation, financial statement
disclosures and a number of complex items were audited by the group engagement team at the Company’s head office. This included procedures
performed over derivative financial instruments, goodwill impairment analyses, accounting for the merger between Ahold and Delhaize,
Management Board remuneration including share based payments and Group finance’s resolution of complex accounting matters. For all other
components we used component auditors who are familiar with the local laws and regulations to perform the audit work.
By performing the procedures above at components, combined with additional procedures at group level, we have obtained sufficient and
appropriate audit evidence regarding the financial information of the group as a whole to provide a basis for our opinion on the consolidated
financial statements.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements. We have
communicated the key audit matters to the Supervisory Board, but they are not a comprehensive reflection of all matters that were identified
by our audit and that we discussed. We described the key audit matters and included a summary of the audit procedures we performed on
those matters.
The key audit matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon. We do
not provide a separate opinion on these matters or on specific elements of the financial statements. Any comments we make on the results of our
procedures should be read in this context.
Net sales
Total assets
Income before income taxes
In total, in performing these procedures, we achieved the following coverage on the financial line items:
91%
84%
85%
