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196
Rothschild & Co | Annual Report 2017
Statutory auditors’ report on the financial statements for the
nine month-period ended 31 December 2017
As part of an audit conducted in accordance with professional standards
applicable in France, the statutory auditor exercises professional judgement
throughout the audit and furthermore:
• Identifies and assesses the risks of material misstatement of the
financial statements, whether due to fraud or error, designs and
performs audit procedures responsive to those risks, and obtains
audit evidence considered to be sufficient and appropriate to provide a
basis for his opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtains an understanding of internal control relevant to the audit 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
internal control.
• Evaluates the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made
by management in the financial statements.
• Assesses the appropriateness of management’s use of the going
concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a
going concern. This assessment is based on the audit evidence obtained
up to the date of his audit report. However, future events or conditions
may cause the Company to cease to continue as a going concern. If the
statutory auditor concludes that a material uncertainty exists, there
is a requirement to draw attention in the audit report to the related
disclosures in the financial statements or, if such disclosures are not
provided or inadequate, to modify the opinion expressed therein.
• Evaluates the overall presentation of the financial statements and
assesses whether these statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Report to the audit committee
We submit a report to the Audit Committee which includes in particular a
description of the scope of the audit and the audit program implemented,
as well as the results of our audit. We also report, if any, significant
deficiencies in internal control regarding the accounting and financial
reporting procedures that we have identified.
Our report to the Audit Committee includes the risks of material
misstatement that, in our professional judgement, were of most significance
in the audit of the financial statements of the current period and which are
therefore the key audit matters, that we are required to describe in this
audit report.
We also provide the Audit Committee with the declaration provided for in
Article 6 of Regulation (EU) N° 537/2014, confirming our independence
within the meaning of the rules applicable in France such as they are set in
particular by Articles L.822-10 to L.822-14 of the French Commercial Code
(code de commerce) and in the French Code of Ethics (code de déontologie)
for statutory auditors. Where appropriate, we discuss with the Audit
Committee the risks that may reasonably be thought to bear on our
independence, and the related safeguards.
French original signed by
the statutory auditors
Paris La Défense, on the 13 March 2018
KPMG S.A
Arnaud Bourdeille
Partner
Paris, on the 13 March 2018
Cailliau Dedouit et Associés
Jean-Jacques Dedouit
Partner