Annual report 2019

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We have also taken into account misstatements and/or possible misstatements that in our opinion are material for the users of the fnancial statements for qualitative reasons. We agreed with the Supervisory Board that misstatements in excess of EUR 975 thousand, which are identifed during the audit, would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds.

the fnancial statements. We have also used data analysis to identify and address high-risk journal entries.

We incorporated elements of unpredictability in our audit. We considered the outcome of our other audit procedures and evaluated whether any fndings were indicative of fraud or non-compliance. If so, we reevaluate our assessment of fraud risk and its resulting impact on our audit procedures. Our audit response related to risks of non-compliance with laws and regulations We assessed factors related to the risks of non-compliance with laws and regulations that could reasonably be expected to have a material effect on the fnancial statements from our general industry experience, through discussions with the management board, reading minutes, inspection of internal audit and compliance reports and performing substantive tests of details of classes of transactions, account balances or disclosures. Where applicable, we also inspected lawyers’ letters and correspondence with regulatory authorities and remained alert to any indication of (suspected) non-compliance throughout the audit. Finally we obtained written representations that all known instances of non-compliance with laws and regulations have been disclosed to us. GOING CONCERN In order to identify and assess the risks of going concern and to conclude on the appropriateness of management’s use of the going concern basis of accounting, we consider based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signifcant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the fnancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company to cease to continue as a going concern. SCOPE OF THE GROUP AUDIT Royal Boskalis Westminster N.V. is at the head of a group of entities. The fnancial information of this group is included in the consolidated fnancial statements of Royal Boskalis Westminster N.V.

OUR FOCUS ON FRAUD AND NON-COMPLIANCE WITH LAWS AND REGULATIONS

Our responsibility Although we are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect non-compliance with all laws and regulations, it is our responsibility to obtain reasonable assurance that the fnancial statements, taken as a whole, are free from material misstatement, whether caused by fraud or error. Non-compliance with laws and regulations may result in fnes, litigation or other consequences for the company that may have a material effect on the fnancial statements. of the fnancial statements due to fraud, we obtained an understanding of the entity and its environment, including the entity’s internal control relevant to the audit and in order to design audit procedures that are appropriate in the circumstances. As in all of our audits, we addressed the risk of management override of internal control. We do not audit internal control per se for the purpose of expressing an opinion on the effectiveness of the company’s internal control. We considered available information and made enquiries of relevant executives, directors (including internal audit and legal department) and the Supervisory Board. As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to fnancial reporting fraud, misappropriation of assets and bribery and corruption. In our risk assessment we considered the fact that Royal Boskalis Westminster N.V. is a global company, operating in multiple jurisdictions, and the inherent potential risk of bribery and corruption. We evaluated the design and the implementation of internal controls that mitigate fraud risks. In addition, we performed procedures to evaluate key accounting estimates for management bias in particular relating to important judgment areas and signifcant accounting estimates as disclosed in Note 6 and 20 to Our audit response related to fraud risks In order to identify and assess the risks of material misstatements

ANNUAL REPORT 2019 – BOSKALIS