NETHERLANDS Law and Practice Contributed by: Manon Cremers, Heleen Kersten, Frédérique van der Wegen and Sandra Rietveld, Stibbe
• at least once a year, the management board must audit the operation of the internal risk management and control systems, and carry out a systematic review of their design and effectiveness; • this monitoring covers all material control measures related to strategic, operational, compliance and reporting risks; and • in performing their duties, the auditors must take into account the effectiveness of internal risk and control systems and the integrity and quality of financial reports. Internal Audit Function The internal audit function is responsible for assessing the design and operation of the inter - nal risk management and control systems. The management board is responsible for the internal audit function. The supervisory board supervises the internal audit function and maintains regular contact with the person performing this function. The internal audit function reports hierarchically to a managing director, preferably the CEO.
In the management report, the management out - lines the main risks and certainties to which the NV or BV is exposed. For a proper understand - ing of the results or position of the company and its group companies, the management report also includes, if necessary, an analysis of both financial and non-financial performance indica - tors, including environmental and employment- related issues.
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