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SEC holds a seminar to disseminate the results of a study of the audit adjustments of listed companies.



Wednesday 18 December 2019 | No. 185 / 2019


Bangkok, Wednesday 18 December 2019 - SEC holds a seminar to disseminate the results of a study of transactions for which the auditor proposes the listed companies to adjust their financial statements for the audit of the year ended 2018 financial statements (audit adjustments). This is the first occasion in Thailand, and is in order that the executives and audit committees of listed companies may gain knowledge of accounting transactions which are often incorrectly recorded, and the auditors must, therefore, make the necessary adjustments. The seminar is also intended to seek comments for the purpose of the improvement and the development of the quality of financial reporting in the capital market.

SEC Deputy Secretary-General Sirivipa Supantanet stated that this is the first study of audit adjustments in Thailand.  This study presents errors in accounting transactions found by auditors which must be corrected, and the root cause analysis for such errors.  The study also proposes recommendations on important factors which play an important role in the accurate preparation of financial statements from the origin, in order to enhance the quality of financial reporting.

The study was conducted by the Research Institute for Policy Evaluation and Design, University of the Thai Chamber of Commerce.  According to the study, the recording of accounting transactions by listed companies in Thailand can be further improved.  The study also reveals that most audit adjustments occurred from the factual misstatements, limitations of the accounting systems, insufficient internal coordination, and the lack of awareness of the role and duties of the chief financial officer (CFO) and accountants in preparing financial statements.  

The study also reveals the importance of the role of the executives, directors, and audit committee members in reducing financial statements adjustments, where improvement must be made to the operations system, the accounting system, the database, and the internal control system.  Training on accounting knowledge must be provided from the origin, in order to accommodate the accurate preparation of financial statements.  This will facilitate the executives of listed companies in applying financial information for business decision-making in a prompt and accurate manner.  The results of the study will, therefore, benefit the stakeholders in preparing financial reports and in setting guidelines for the improvement and development of the financial reporting of listed companies so that the financial reporting is reliable, of good quality from the very beginning, and meets the objectives.  SEC, as one of the stakeholders in financial reporting system, will apply the results of the study in the consideration of formulating policies for the development of financial reporting of listed companies.”   

The seminar on the study of audit adjustments was held at Sangwian Intarawichai Auditorium, the Stock Exchange of Thailand on 16 December 2019 with more than 400 participants, comprising executive directors, members of audit committees, and executives of listed companies.  

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