Compilation versus audit in the Netherlands
Compilation versus audit : understanding the difference between compilation and audit in the Netherlands is key for a Dutch BV. as compilation and audit serve different purposes
For a Dutch entity, annual accounts may be prepared with different levels of professional involvement depending on the situation.
A compilation engagement is not the same as a statutory audit. Compilation support focuses on preparing financial statements from the entity’s accounting records and information provided by management.
An audit involves independent assurance work and is only required when the Dutch entity meets the relevant statutory audit criteria or when an audit is otherwise requested.
When compilation support may be enough
For many smaller Dutch entities, including foreign-owned BVs below the statutory audit thresholds, compilation and annual accounts support may be the relevant service.
The practical focus is usually on:
- preparing annual accounts from the accounting records;
- reviewing whether the information is complete enough for the work;
- coordinating with the parent-company finance team;
- making sure local reporting work is organised and documented;
- supporting a clear year-end process.
Also read Annual Accounts for a Dutch BV and Raad voor de Jaarverslaggeving – RJNet
When audit becomes relevant
An audit may become relevant when a Dutch entity exceeds the applicable statutory size criteria, when group reporting requires audit involvement or when another stakeholder requests assurance.
Kanso Accounting does not position itself as an audit firm. Where audit requirements are relevant, those should be assessed separately and, where needed, handled by a properly licensed audit firm.
How Kanso helps
Kanso helps Dutch entities with accounting, VAT and compilation support.
Where the entity does not require audit-level work, Kanso can help organise the records, annual accounts process and parent-company communication in a practical and controlled way.
Discuss your Dutch reporting requirement
Tell us about the Dutch entity, current accounting records, reporting needs and whether audit has been raised as a question.
