Netherlands Association of Registered Controllers

The Audit Firms Supervision Act establishes a quality assurance (QA) review system for all mandatory audits in the Netherlands under the oversight of the Authority for the Financial Markets (AFM). The AFM conducts inspections of audit firms performing statutory audits of public interest entities and has delegated responsibility for inspections of audit firms conducting non-public interest entity audits to the Royal Netherlands Institute of Chartered Accountants (NBA Netherlands).

Members of the Netherlands Association of Registered Controllers (VRC) are not statutory auditors and primarily provide services in management accounting, financial accounting, integrated reporting, strategic control and risk management, and corporate governance. Accordingly, the VRC has no direct responsibility for the adoption or implementation of the jurisdiction’s QA review system for audits.

Within the scope of its mandate, the VRC maintains committees and professional development activities focused on the quality of education and training for its members, including areas related to risk management, internal control, and relevant professional standards.

Current Status: Sustain

Initial professional development and continuing professional development requirements for auditors in the Netherlands are established under the Accountancy Profession Act. In addition, professionals may voluntarily join the Netherlands Association of Registered Controllers (VRC) and become subject to its education, competence, and professional development requirements.

The VRC offers the Registered Controller designation to individuals who successfully complete the Executive Master of Finance and Control program and meet the relevant academic and professional experience requirements. Universities conduct examinations and assess competencies as part of the program.

The VRC engages in ongoing dialogue with accredited education providers and reviews existing programs through its Quality Assurance Committee to help ensure continued alignment with relevant standards and the professional competence requirements for future Registered Controllers. The association also monitors developments to the International Education Standards and updates its requirements as necessary.

The VRC requires its members to complete 120 hours of continuing professional development over a three-year period and supports compliance through its Finance Academy, which provides a range of educational materials, training programs, and learning opportunities. Compliance with continuing professional development requirements is monitored and enforced by the association.

Current Status: Sustain

The Accountancy Profession Act specifies that the Royal Netherlands Institute of Chartered Accountants (NBA Netherlands) is responsible for setting auditing standards in the Netherlands, subject to oversight by the Authority for the Financial Markets (AFM). International Standards on Auditing, as issued by the International Auditing and Assurance Standards Board, are adopted without modification, including the effective dates, for application in all mandatory financial statement audits.

Members of the Netherlands Association of Registered Controllers (VRC) are not statutory auditors and primarily provide services in management accounting, financial accounting, integrated reporting, strategic control and risk management, and corporate governance.

Within the scope of its mandate, the VRC supports implementation of relevant standards through its continuing professional development program and the Executive Master of Finance and Control curriculum, which includes topics related to management accounting, internal control, assurance, and auditing-related matters.

The association also assists members in remaining up to date with developments in International Auditing and Assurance Standards Board pronouncements by providing access to relevant IAASB and IFAC resources.

Current Status: Sustain

Professional accountants other than auditors may be regulated through their voluntary membership in the Netherlands Association of Registered Controllers (VRC). The VRC Code of Ethics and Conduct is aligned with the relevant requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) for Registered Controllers, including the fundamental principles, conceptual framework, requirements for professional accountants in business, and relevant independence provisions.

The VRC reports that its ethics oversight function continuously monitors, analyses, and responds to revisions to the IESBA Code. The association periodically reviews and updates its own Code to maintain alignment with international developments. The most recent update to the VRC Code was approved in May 2023 and became effective on 1 January 2024.

The association supports members’ compliance with the Code through regular updates published on its website and in its professional journal, as well as through the availability of both Dutch and English versions in members’ online portals. Ethical requirements are also embedded in the Executive Master of Finance and Control initial professional development program and in the VRC’s continuing professional development curriculum.

In addition, the VRC organizes ethics-focused events and case-based discussions that allow members to consider professional dilemmas and seek guidance in resolving significant ethical situations.

The VRC also participates in the international standard-setting process by providing comments on exposure drafts and other pronouncements issued by the International Ethics Standards Board for Accountants.

Current Status: Sustain

In the Netherlands, public sector accounting requirements are established through national public financial management laws, regulations, and government reporting frameworks. While accrual-based accounting principles are applied in parts of the public sector, the central government continues to operate primarily on a cash and commitments basis, and accrual-basis International Public Sector Accounting Standards (IPSAS) have not been adopted at the jurisdiction level.

As part of its best endeavors, the Netherlands Association of Registered Controllers (VRC) promotes generally accepted accounting techniques and sound financial management practices for members working in the public and not-for-profit sectors, including concepts aligned with IPSAS and broader public sector financial accountability principles.

The VRC supports its members through continuing professional development activities relevant to public sector accounting, provides access to IPSASB and IFAC resources, and publishes articles and interviews on public sector accounting topics in its professional journal.

The association also maintains a Public Sector Working Group comprising key stakeholders that supports dialogue on public sector financial reporting developments and encourages convergence with international good practices.

In addition, the VRC participates in the international standard-setting process by providing comments on exposure drafts and other pronouncements issued by the International Public Sector Accounting Standards Board.

Current Status: Sustain

Professional accountants other than auditors may be regulated through their voluntary membership in the Netherlands Association of Registered Controllers (VRC). In accordance with its constitution and governance framework, the VRC maintains an investigations and disciplinary (I&D) system to monitor and enforce compliance with professional standards, the Code of Ethics, and disciplinary regulations applicable to its members who are management and financial accountants.

The VRC confirms that its I&D procedures are aligned with the SMO 6 benchmark.

The disciplinary function is responsible for receiving, assessing, and ruling on complaints against members, while the appeals function is responsible for reviewing appeals against disciplinary decisions. These bodies include both VRC members and independent external professionals to support objectivity and independence in the process.

The VRC also ensures that members have access to continuing professional development activities covering current regulations, ethical requirements, and the operation of the I&D system.

In addition, the association conducts regular reviews of the effectiveness and independence of its I&D framework to help ensure continued alignment with SMO 6 requirements.

Current Status: Sustain

In accordance with Book 2, Title 9 of the Dutch Civil Code, the Dutch Accounting Standards Board is responsible for setting applicable private sector accounting standards in the Netherlands. In line with the EU IAS Regulation, International Financial Reporting Standards (IFRS Accounting Standards) as adopted by the European Union are required for the consolidated financial statements of listed companies and other publicly accountable entities within scope.

The Netherlands Association of Registered Controllers (VRC) focuses on supporting implementation, given that financial reporting represents a significant part of its members’ professional activities.

IFRS Accounting Standards and broader financial reporting topics are incorporated into the Executive Master of Finance and Control initial professional development program and into the VRC’s continuing professional development courses offered through its Finance Academy. The association also provides updates and technical information on financial reporting developments through its website and professional publications.

The VRC participates in the standard-setting process by raising awareness of the potential impact of International Accounting Standards Board exposure drafts, interpretations, and other pronouncements.

In addition, the association supports proportionate financial reporting approaches for small and medium-sized entities and promotes awareness of the reporting options available under Dutch law for smaller entities.

Current Status: Sustain