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IAI Actuarial Core Principles · Business Finance · Regulation of financial reporting of incorporated entities

Under the Companies Act 2013, who is responsible for approving the financial statements of a company before they are submitted to the auditor and shareholders?

The Board of Directors approves the financial statements and they are signed on its behalf by authorised directors and key managerial personnel. The auditor then reports on them and shareholders consider them at the annual general meeting. The auditor is not the preparer.

  1. AThe statutory auditor, who signs them as the preparer
  2. BThe Registrar of Companies
  3. CThe Board of Directors, which approves and signs them on behalf of the companyCorrect
  4. DThe shareholders in a general meeting before the Board sees them
  5. The company's bankers

Explanation

Financial statements are approved by the Board of Directors and signed by specified persons such as the chairperson or two directors, along with the CEO, CFO and company secretary where appointed. The auditor reports on them but does not prepare them. Shareholders adopt them later at the AGM.

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