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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures

Orion Components Ltd, a listed company, prepares its Directors' Responsibility Statement. Which set of statements is correct under Section 134(5)?

A listed company's Directors' Responsibility Statement must say internal financial controls were laid down and are adequate and operating effectively, and that proper systems for compliance with all applicable laws were devised and are adequate and operating effectively, in addition to the accounting statements.

  1. AInternal financial controls adequacy statement is required for all companies, listed or not
  2. BDirectors must state that internal financial controls were laid down and are adequate and operating effectively, and this applies in the case of a listed company; and that systems to ensure compliance with applicable laws were devised and operating effectivelyCorrect
  3. COnly the going concern basis and accounting standards statements are required for listed companies
  4. DCompliance systems statement is required only for companies with a CSR obligation

Explanation

Section 134(5)(e) requires the internal financial controls statement in the case of a listed company, and clause (f) requires the statement on systems for compliance with all applicable laws, adequate and operating effectively. The first option wrongly extends (e) to all companies.

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