At the end of an audit, a CFO can receive three different documents from the auditor. Just Audit explains what each one is for, who reads it, and what you should do with it.
The auditor’s report is the public opinion on your annual accounts. The report to the board is a confidential report on the audit’s findings for management and the supervisory board. The management letter is a practical letter on improvements to processes and controls. They answer different questions, and only one of them ends up on the KVK website for everyone to read.
The Auditor’s Report (Controleverklaring)
This is the document most people think of when they hear the word audit. It contains the auditor’s opinion on whether the annual accounts give a true and fair view and comply with the law (art. 2:393 lid 5 BW). It is filed with the accounts at the KVK, so anyone can read it: banks, suppliers, investors and competitors.
The opinion can take different forms:
- Unqualified: the accounts give a true and fair view. This is the outcome you are aiming for.
- Qualified: the accounts are fair except for a specific matter, which the report explains.
- Adverse: the accounts do not give a true and fair view.
- Disclaimer: the auditor could not obtain enough evidence to form an opinion.
Because it is public, anything other than an unqualified opinion can have real consequences, for example with your bank. Discuss any potential issue with your auditor well before the report is signed.
The Report to the Board (Accountantsverslag)
Dutch law requires the auditor to report on the audit to the supervisory board and the management board (art. 2:393 lid 4 BW). This report is not public. It covers the main findings of the audit, such as significant risks, important estimates, misstatements that were found and whether they were corrected, and any issues with the reliability and continuity of automated data processing. The professional standard for communicating with those charged with governance is NV COS 260.
For a CFO, this report is the most useful look at how the auditor sees the company. It is also the document a supervisory board will ask about, so read it before they do.
The Management Letter
The management letter is not a legal requirement in itself, but it is common. It describes deficiencies in internal control that the auditor noticed, with recommendations to fix them. Significant deficiencies must be reported in writing under NV COS 265. Many auditors send a management letter after the interim audit, so there is still time to act before year-end. At Just Audit we prefer to send the final management letter after completion of the audit. This ensures all relevant topics can be included.
Treat it as a to-do list, not as reading material for the archive. Agree who owns each point and by when, and check at the next audit what has changed. If the same point appears three years in a row, it is no longer a recommendation. It has become a tradition, and usually a sign that something structural needs attention.
How They Fit Together
| Document | Who reads it | Public | What to do |
|---|---|---|---|
| Auditor’s report | Everyone | Yes | Make sure there are no surprises before signing |
| Report to the board | Management and supervisory board | No | Discuss the findings and follow up |
| Management letter | Management | No | Assign actions and track progress |
Getting the Most From Your Auditor’s Reports
Just Audit B.V. is an independent, audit-only firm with an AFM licence for statutory audits (excluding OOBs). Our auditors are RAs registered with the NBA. Have a look at our statutory audit services, read how we work, or see what happens when in our year-end audit timeline.
