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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