Working with your auditor in the Netherlands: Best practices

For many international businesses operating in the Netherlands, the annual financial statement audit is seen primarily as a compliance exercise. However, organisations that derive the greatest value from the audit process view it differently. They see the audit as an opportunity to provide shareholders, investors, lenders and other stakeholders with independent assurance over their financial reporting.

Whether you manage a Dutch subsidiary of an international group or operate a growing business in the Netherlands, preparing for an external audit requires more than responding to information requests. A successful audit is built on preparation, transparency and effective collaboration between management and the external auditor, while maintaining the auditor's independence.

Understanding what your auditor expects and adopting practical best practices can make the audit process significantly more efficient, reduce unnecessary delays and strengthen stakeholder confidence in your organisation.

What does your external auditor expect?

Many organisations believe their auditor's primary responsibility is to verify financial figures. In reality, auditors are required to obtain sufficient appropriate audit evidence to form an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.

To achieve this, auditors need more than accurate numbers. They expect management to provide reliable information, clear explanations and timely access to documentation.

Typically, auditors expect:

• Accurate and complete financial information
• Well-supported accounting estimates and judgements
• Timely responses to audit requests
• Access to relevant documentation and agreements
• Open communication regarding significant developments
• Effective internal controls and an understanding of relevant financial reporting risks

When these expectations are met, the audit process becomes more efficient and productive for both parties.

For international businesses with a Dutch subsidiary, additional attention may be required when local statutory financial statements are prepared under Dutch GAAP, while the parent company reports under IFRS or another group reporting framework.

Aligning local reporting requirements with group reporting deadlines and audit instructions at an early stage can help prevent unnecessary complications.

Preparing for your annual audit throughout the year

One of the most common causes of audit delays is leaving preparations until year-end. Effective audit preparation is an ongoing process. Maintaining reconciliations, documenting significant transactions and addressing complex accounting matters throughout the year reduces pressure during the audit and improves the overall quality of financial reporting.

Organisations should ensure that:

• Balance sheet accounts are reconciled regularly
• Significant transactions are documented when they occur
• Accounting policies remain up to date
• Supporting schedules are maintained throughout the year
• Complex transactions and their accounting implications are identified and discussed with auditors at an early stage.

For international groups, it is also important to coordinate local and group reporting deadlines. A Dutch subsidiary may need to prepare statutory financial statements under Dutch GAAP while simultaneously providing financial information for the parent company's consolidated financial statements and group audit.

Without clear planning, these overlapping requirements can create additional pressure on local finance teams.

Early preparation helps avoid surprises, reduces last-minute adjustments and enables auditors to perform their work more efficiently.

High-quality audit documentation makes a difference

High-quality documentation is one of the most important contributors to an efficient financial statement audit.

Even when accounting treatments are correct, insufficient supporting evidence can lead to delays, additional audit procedures and repeated information requests.

Documentation should be:

• Complete: Information should reconcile to the general ledger and financial statements.
• Clear: Supporting evidence should be understandable without requiring extensive explanation.
• Consistent: Contracts, calculations and accounting entries should support the same conclusion.
• Accessible: Documentation should be well organised and readily available.

In practice, a well-prepared audit file can make a significant difference, particularly when multiple entities, finance teams or auditors are involved.

Strong documentation allows audit teams to focus on significant risks and matters requiring professional judgement rather than administrative follow-up.

It also helps management maintain control over financial information throughout the year, not just during the annual audit.

Open communication helps prevent audit delays

An effective audit relationship is built on transparency.

Auditors understand that businesses face challenges and that issues can arise during the year. What matters most is that significant matters are communicated openly and at an early stage.

Management should proactively discuss developments such as:

• Business acquisitions or restructurings
• Changes in accounting policies
• New or amended financing arrangements
• Identified internal control deficiencies
• Significant tax risks or disputes
• Going concern considerations

For international businesses, changes in group structure, intercompany transactions or reporting requirements can also affect the audit process.

Addressing these matters early gives both management and the auditor sufficient time to assess the accounting and audit implications.

Open communication reduces uncertainty, helps prevent surprises and contributes to a more efficient audit process.

Strong internal controls support reliable financial reporting

Organisations with effective internal controls are generally better positioned to prepare reliable financial information and respond efficiently to audit requests.

Internal controls help management ensure that transactions are processed correctly, financial information is accurate and risks are identified and managed appropriately.

Regular attention should be given to:

• Segregation of duties
• Approval procedures
• Access management
• Financial reporting controls
• IT general controls
• Risk management processes

For international organisations, maintaining consistent internal controls across different entities and jurisdictions can be particularly challenging.

Local finance teams may use different accounting systems, reporting procedures or approval processes. Without sufficient coordination, these differences can increase the risk of errors and complicate both local statutory audits and international group audits.

A robust control environment therefore benefits the organisation beyond the audit itself. It supports financial control, more reliable reporting and better-informed management decisions.

Building an effective long-term relationship with your auditor

The most effective auditor-client relationships are based on professionalism, mutual respect and a shared commitment to high-quality financial reporting.

While auditors must remain independent and exercise professional scepticism, constructive communication and clear expectations contribute to a more effective audit process.

Organisations that invest in a professional working relationship with their auditor often benefit from better communication, more efficient audit planning and a clearer understanding of financial reporting requirements.

In our experience, this is particularly valuable for international businesses dealing with multiple reporting frameworks, local statutory requirements and group audit procedures.

The objective is not to eliminate critical questions or challenging discussions. These are an essential part of an independent audit.

Instead, the focus should be on ensuring that significant matters are identified early, information is readily available and both management and the auditor understand the agreed timetable and responsibilities.

How Bol International supports international businesses with their audits

At Bol International, we believe that a successful audit starts with a strong and constructive professional relationship between the auditor and the organisation.

An audit should not be seen as a process in which information is merely requested and provided. Instead, effective collaboration, clear communication and timely preparation help create an efficient audit process without compromising auditor independence.

Our audit specialists work with international businesses, Dutch subsidiaries and organisations operating across multiple jurisdictions.

We understand the challenges that arise when Dutch statutory audit requirements need to be aligned with international group reporting obligations, different accounting frameworks and reporting deadlines.

By maintaining open communication, setting clear expectations and focusing on audit quality, we aim to make the process as efficient and transparent as possible.

A smoother audit starts with preparation and collaboration 

Working effectively with your auditor is about far more than responding to audit requests. It requires preparation, transparency, high-quality documentation and a commitment to reliable financial reporting throughout the year.

For international businesses operating in the Netherlands, effective audit planning also means considering local statutory requirements alongside international group reporting obligations.

When management and auditors work together professionally and transparently, while respecting their respective responsibilities, the result can be a smoother audit process and greater confidence in the financial information presented to stakeholders.

Looking to improve the efficiency of your annual audit in the Netherlands?

Whether you are preparing for your first Dutch statutory audit, coordinating an international group audit or looking to improve your existing audit process, our specialists are happy to discuss your situation.