Report to the National Bank of Belgium in accordance with article 225, first paragraph, 2°, b) of the Law dated 25 April 2014 on the annual periodic reports of (identification of the institution) as of DD.MM.YYYY
We have audited the annual periodic reports of (identification of the institution) as of and for the year ended DD.MM.YYYY prepared in accordance with the prevailing guidelines of the National Bank of Belgium (NBB) which show a balance sheet total of EUR xxxx and a profit (loss, depending on the circumstances) of EUR xxxx. The annual periodic reports have been prepared by Management in conformity with the prevailing guidelines of the NBB.
To be added in case the institution makes use of internal models to calculate the regulatory capital requirements
Our engagement does not comprise the review of the internal models that are used for the calculation of the regulatory capital requirements and the models of which the outcome is used as input for the calculation of the regulatory capital requirements and for which the NBB does not require any reporting from the auditor. The accreditation of the internal models as well as the compliance with the accreditation requirements are, for prudential purposes, followed-up directly by the NBB.
Management is responsible for the preparation and fair presentation of the periodic reports in accordance with the prevailing guidelines of the NBB and for such internal control that management determines necessary to enable the preparation of the periodic reports to be free from material misstatement, whether due to fraud or error.
Accredited auditor’s responsibility
It is our responsibility to express an opinion on the periodic reports based on our audit. We conducted our audit in accordance with the “Specific auditing standard regarding the collaboration on prudential supervision”. This standard requires that the audit of the periodic reports be conducted in accordance with International Standards on Auditing and the NBB instructions to the accredited auditors. These standards and instructions require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the periodic reports are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the periodic reports. The procedures selected depend on the accredited auditor’s judgment, including the assessment of the risks of material misstatement of the periodic reports, whether due to fraud or error. In making those assessments, the accredited auditor considers internal control relevant to the credit institution’s periodic reports, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the credit institution’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the periodic reports.
We believe that the audit evidences we have obtained are sufficient and appropriate to provide a basis for our audit opinion.
Conclusion if the institution does not make use of internal models for the purpose of calculating the regulatory capital requirements
Conclusion if the institution makes use of internal models for the purpose of calculating the regulatory capital requirements
In our opinion and subject to the scope limitation related to the execution of our mission on the internal models for which the NBB does not require for prudential purposes any reporting from the accredited auditors, the periodic reports as at DD.MM.YYYY of (identification of the institution) have, in all material respects, been prepared in accordance with the prevailing guidelines of the NBB.
that the accounting data included in the periodic reports of (identification of the institution) as at DD.MM.YYYY correspond, in all material respects, to the accounting records and supporting ledgers with regard to completeness (i.e. meaning that the periodic reports include all the data contained in the accounting records and supporting ledgers on which base the periodic reports have been prepared) and accuracy (i.e. meaning that the data have been correctly extracted from the accounting records and supporting ledgers on which base the periodic reports have been prepared);
that the periodic reports as at DD.MM.YYYY have been prepared in accordance with the accounting and valuation principles used for the preparation of the financial statements;
that the total amount of own funds for solvency purposes (tables C.01 and C.02) is accurate and complete;
To be added in case the institution for the purpose of the calculation of the regulatory capital requirements uses an approach that is not internal model-based
with respect to the calculation of the regulatory capital requirements using an approach that is not internal model-based:
operational risk: the accuracy and completeness of the calculation to the extent the calculation is based on accounting or analytical accounting records that can be reconciled to the accounting records;
market risk: the appropriateness of the calculation and valuation of the positions (verification whether all positions have been considered as required by the capital requirements regulation and that the capital requirements have been calculated in an accurate and complete manner on the basis of calculation tables);
credit risk: we performed the procedures listed in annex 2 to the instructions of the NBB to the accredited auditors (NBB_2012_16-2) “Evaluation of the own fund tables of entities that use the standardized approach for the calculation of the required credit risk capital (annex to chapter C)” and have no significant findings to report.
Other matters and attention points
(identification of the institution) has prepared a separate set of financial statements for the year ended DD.MM.YYYY prepared in accordance with (“Belgian accounting standards” or “IFRS”, as appropriate) on which we issued a separate opinion (“to the shareholders”, as appropriate) as of DD.MM.YYYY.
(Auditors can consider to include key evolutions or observations that could be, on the basis of their professional judgment, considered relevant for the supervisory authority such as:
Follow up of findings identified by the NBB or other regulatory authorities in and outside Belgium (in case of subsidiaries and/or branches of the Belgian entity) and key issues noted.….)
Restrictions on use and distribution
The periodic reports have been prepared to meet the requirements of the NBB in terms of prudential reporting. As a result, the periodic reports may not be suitable for other purposes.
This report has been prepared in accordance with a special framework that requires the accredited auditor to collaborate to the prudential supervision exercised by the NBB and may, therefore, not be used for other purposes.
A copy of this report has been transmitted to (”the Management Committee”, “the Board of Directors”, or “the Audit Committee”, as appropriate). We draw the attention to the fact that the report may not be communicated (in whole or in part) to third parties without our prior authorization.