Independent Auditor's Report (continued) Report on other legal and regulatory requirements O Q, Introduction Report of the Executive Board Report of the Supervisory Board Taxes - provisions for uncertain tax positions and valuation of deferred tax assets How the scope We obtained a detailed understanding of the Company's tax exposures including of our audit current transfer pricing arrangements. Using our own tax specialist, we assessed tax responded risks, legislative developments and the status of ongoing local tax authority audits. We to the risk evaluated and challenged the Company's judgements in respect of estimates of tax exposures, recoverable amounts and contingencies. We considered correspondence with tax authorities and relevant historical and recent judgements and assessed opinions from third party tax advisors. With regards to recorded deferred tax assets, we evaluated the Company's assumptions and estimates in relation to the likelihood of generating sufficient future taxable income based on budgets and business plans. Finally, we considered the adequacy of the Company's disclosures in notes 12.1 12.2, 12.3 and 9.3 regarding uncertain tax positions and recognised deferred tax assets. Observation We have evaluated the provisions for uncertain tax positions and the valuation of deferred tax assets as well as the related disclosure in notes 12.1, 12.2, 12.3 and 9.3. We have no reportable findings. Internal controls over financial reporting Risk The Company operates various processes and procedures that are important for reliable financial reporting. These processes are operated both centrally and locally. We identified the Company's internal controls over financial reporting as an area of focus, as we consider internal controls over financial reporting as a basis for designing our procedures for the audit. In those instances where accounting procedures, associated IT and process level controls are not designed and/or operating effectively, there are risks associated with financial reporting to which we need to tailor our audit procedures. We performed audit procedures on both the centrally and locally established process level controls of the Company, including the diverse information technology landscape. We performed walkthroughs to gain an understanding of the entity and to identify relevant controls. We tested the design of those controls and, where effective for the audit, we also tested their operating effectiveness. In cases of deficiencies, we evaluated the compensating controls and measures of the Company and/or tailored procedures our procedures to address the risk. We are, however, neither required nor engaged to perform an audit of internal controls over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Company's internal controls over financial reporting. Observation We communicated our observations on internal controls over financial reporting to the Company's Audit Committee. Where deemed necessary, we mitigated the effect of internal control observations by testing alternative controls or by extending our substantive audit procedures. Overall, we obtained sufficient and appropriate evidence in response to the related financial reporting risks. How the scope of our audit responded to the risk Heineken N.V. Annual Report 2018 Financial Statements Sustainability Review Other Information Our previous year's auditor's report included Acquisition accounting: identification and valuation of intangible assets and valuation of liabilities' as a key audit matter. During 2018, no significant acquisitions or disposals took place. Consequently, we did not include this as a key audit matter in current year's auditor's report. Report on the other information included in the Annual Report 2018 In addition to the financial statements and our auditor's report thereon, the Annual Report 2018 contains other information that consists of: - Report of the Executive Board; - Report of the Supervisory Board; - Other Information pursuant to Part 9 of Book 2 of the Dutch Civil Code; and - Other information included in the Annual Report. Based on the following procedures performed, we conclude that the other information: - Is consistent with the financial statements and does not contain material misstatements; and - Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code. We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the financial statements. The Executive Board is responsible for the preparation of the other information, including the Report of the Executive Board in accordance with Part 9 of Book 2 of the Dutch Civil Code and other information pursuant to Part 9 of Book 2 of the Dutch Civil Code. Engagement We were engaged by the Supervisory Board as auditor of Heineken NV on April 24, 2014 as of and for the year ending 31 December 2015 and have operated as statutory auditor ever since that financial year. No prohibited non-audit services We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements regarding statutory audit of public-interest entities.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 160