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162
Independent Auditor's Report
Heineken N.V.
Annual Report 2020
Introduction
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
Furthermore, we developed a plan for overseeing each component audit team based on its relative
significance and specific risk characteristics, also considering COVID-19 related travel and containment
restrictions. Our oversight procedures included remote working paper reviews for The Netherlands, United
Kingdom, France, Spain, Italy, Austria, Poland, USA, Brazil, Mexico, Vietnam, Indonesia, Cambodia, South
Africa, Ethiopia, and Nigeria, virtual meetings with the component auditor and component management and
reviewing component audit team deliverables to gain sufficient understanding of the work performed. Due to
current realities all oversight procedures have been performed remotely whereby we varied the nature,
timing and extent of these procedures based on both quantitative and qualitative considerations. For smaller
components we have performed review procedures or specific audit procedures.
By performing the procedures mentioned above at group entities, together with additional procedures at
group level, we have been able to obtain sufficient and appropriate audit evidence about the group's financial
information to provide an opinion on the consolidated financial statements.
Revenues Operating result Assets
74%
Full scope auditor coverage
Other coverage
Scope of fraud and non-compliance with laws and regulations
In accordance with Dutch Standards on Auditing, we are responsible for obtaining reasonable assurance that
the financial statements taken as a whole are free from material misstatements, whether due to fraud or error.
Inherent to our responsibilities for the audit of the financial statements, there is an unavoidable risk that
material misstatements go undetected, even though the audit is planned and performed in accordance with
Dutch law. The risk of undetected material misstatements due to fraud is even higher, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Also, we are
not responsible for the prevention and detection of fraud and non-compliance with all laws and regulations.
Our audit procedures differ from a forensic or legal investigation, which often have a more in-depth character.
In identifying potential risks of material misstatement due to fraud and non-compliance with laws and
regulations we evaluated the Company's risk assessment, had inquiries with management, those charged
with governance and others within the group including but not limited to, in-house legal teams, compliance
officers, internal audit and financial reporting teams. We further involved a forensic specialist, evaluated
integrity committee reports (which include the Company's speak up reports) and material litigation reports.
Following these procedures, and the presumed risks under the prevailing audit standards, we considered
fraud risks related to management override of controls (presumed) and related to the valuation of accrued
liabilities for promotional allowances and rebates. Our audit procedures to respond to these fraud risks
include, amongst others, an evaluation of relevant internal controls and supplementary substantive audit
procedures, including detailed testing of journal entries. Data analytics, including analyses for high risk
journals, are part of our audit approach to address fraud risks, which could have a material impact on the
financial statements. Our response in addressing fraud risks related to promotion allowances and rebates,
and the potential bias in significant estimates has been detailed in our key audit matters.
Resulting from our risk assessment procedures, and whilst considering that effects from non-compliance
could considerably vary, we considered adherence to (corporate) tax law and financial reporting with a direct
effect on the financial statements as an integrated part of our audit procedures to the extent material for
the related financial statements. Apart from these, the Company is subject to other laws and regulations
where the consequences of non-compliance could have a material effect on amounts and/or disclosures in
the financial statements, for instance through imposing fines or litigation. Examples of such other laws and
regulations are those relating to anti-bribery and corruption, competition and data privacy laws, and human
rights. As required by auditing standards, we performed audit procedures to identify non-compliance with
these laws and regulations through inquiries with management, those charged with governance and others
within the group and inspection of relevant correspondence with regulatory authorities. We also inspected
lawyers' letters and remained alert to indications of (suspected) non-compliance throughout the audit, held
inquiries with group legal counsel and internal audit, and obtained a written representation that all known
instances of (suspected) non-compliance with laws and regulations were disclosed to us.
