Directors' responsibilities statement
A directors' responsibilities statement is part of an Annual Report that sets out the directors' responsibilities in relation to:
- Preparing financial statements in accordance with relevant laws and regulation;
- Safeguarding the assets of the company, including preventing and detecting fraud; and
- Keeping adequate accounting records.
The purposes of the statement include clarifying the boundary between, and respective responsbilities of, the auditors and the directors.
It is normally included in the Directors' report.
It is known more formally as the 'Statement of directors' responsibilities in respect of the financial statements'.