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CMA Intermediate · Corporate Accounting and Auditing · Report on Internal Financial Control over Financial Reporting

Under the Companies Act, 2013, the Directors' Responsibility Statement in the Board's report of a listed company must state that the directors have laid down internal financial controls and that:

The directors of a listed company must state that internal financial controls have been laid down and that they are adequate and operating effectively. The auditor does not approve them, no Registrar certification is involved, and the statement does not assert that controls have no deficiency.

  1. Asuch controls are adequate and were operating effectivelyCorrect
  2. Bsuch controls have been approved by the statutory auditor
  3. Csuch controls are free from any deficiency
  4. Dsuch controls have been certified by the Registrar

Explanation

Section 134(5)(e) requires directors of listed companies to state that they have laid down internal financial controls to be followed by the company and that such controls are adequate and operating effectively. The auditor does not approve the controls, and the statement does not claim absence of deficiencies.

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