Bangkok, 15 January 2020 - SEC revealed progress after engaging TDRI to conduct a study on laws pertinent to the oversight of audit firms and auditors in Thai capital market in comparison with foreign laws for preparation of suggestion for amendment of the Securities and Exchange Act to ensure better efficiency and effectiveness in supervising the audit firms and auditors in Thai capital market.
In November 2019, SEC engaged the Thailand
Development Research Institute (TDRI) to conduct a study on laws pertaining to
the supervision of audit firms and auditors in foreign capital markets for
supporting amendment of the Securities and Exchange Act B.E. 2535 (Securities
and Exchange Act) to allow more effective and efficient supervision of audit
firms and auditors in Thai capital market.
SEC Secretary-General Ruenvadee
Suwanmongkol said: “This is the first time SEC contracts an independent expert
to study relevant laws on supervision of the audit firms and auditors in Thai
capital market in comparison with foreign laws. TDRI is studying the pertinent
laws in order to prepare suggestions for amendment of the Securities and
Exchange Act. So far the study has covered the laws of 5 major countries.
Initially, it is found that most countries have the laws allowing an agency to
oversee the audit firms and to convene a meeting to seek opinions and advice on
the amendment of the Securities and Exchange Act from stakeholders. The result
of the study and the suggestions on that matter is expected to be completed in
May 2020.
“Then, SEC will promptly proceed
with the amendment of the Securities and Exchange Act in order to ensure that
the enforcement of the law and the enhancement of the protection of investors
in the capital market will be more effective and consistent with the
suggestions received from the latest Financial Sector Assessment Program (FSAP)
in 2019, requesting SEC to amend the Securities and Exchange Act to impose sanctions
on the audit firms in the capital market.
“In addition, SEC will report the
study result to the Department of Business Development, Ministry of Commerce as
information supporting, where relevant, the amendment of the Accounting
Professions Act B.E. 2547, which will lead to the improvement of the audit
oversight in Thailand”
SEC gives priority to audit quality
which is an essential factor to raise the credibility of the financial
reporting system of firms in the capital market. Furthermore, the quality
control system of the audit firms greatly contributes to the quality performance
of auditors. The SEC now requires that auditors in the capital market must be attached
to the audit firms which have a work system in accordance with the quality
control standard. However, in the current structure of laws pertinent to the
audit oversight in Thailand, priority is given to supervision of individual
auditors, but the competent agency is not given the power to directly supervise
the audit firms.
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