Skip to content

CSEET · Economic and Business Environment · Elements of Corporate Governance

Which of the following is a required content of the Directors' Responsibility Statement under section 134 of the Companies Act, 2013?

The Directors' Responsibility Statement must state, among other things, that the directors prepared the annual accounts on a going concern basis. It does not guarantee dividends, claim that directors audited the accounts, or deal with lifetime auditor appointment.

  1. AThat the directors had prepared the annual accounts on a going concern basisCorrect
  2. BThat the directors guarantee a minimum dividend to shareholders every year
  3. CThat the directors have personally audited the accounts
  4. DThat the directors have appointed the statutory auditor for life

Explanation

Section 134(5)(d) states that the directors had prepared the annual accounts on a going concern basis. The other options are not part of the statement; auditing is done by the auditor, and no dividend guarantee or lifetime auditor appointment is required.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Corporate Governance shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Corporate GovernanceFree diagnostic mock

More Elements of Corporate Governance questions