3. Summary of Rules on Granting Approval of Auditors
Filing of Application
Auditor wishing to file an application for approval with the SEC must file [Form 61-1] and the following documents:
1. certification of auditor;
2. applicant’s personal record;
3. certification of audit firm’s leader;
4. audit firm’s record;
5. certification of audit firm;
6. application fee of 50,000 baht.
In considering the application, the SEC may notify the applicant to clarify, take action or submit additional documents and evidence within the period of time prescribed by the SEC. The SEC will notify the applicant of the result of its consideration within 30 days from the date on which the complete documents and evidence have been received.
Period of Approval Validity: 5 years
Qualification of Approved Auditor
1. being a certified public accountant (CPA);
2. being a leader of an audit firm or equivalent or being a partner of an audit firm or equivalent;
3. being attached to only one audit firm
4. not possessing any prohibited characteristics as prescribed by the SEC
Audit Firm Qualifications
1. having audit quality control system which is in compliance with the International Standards on Quality Control 1 (ISQC 1)
2. having at least five full-time CPAs and assistant auditors
Prohibited Characteristics of Auditors
1. being put under receivership by the court’s order; or being an insolvent, incompetent or quasi-incompetent person;
2. being suspended or having been suspended from CPA status during the past three years or having been revoked approval;
3. being suspended or revoked approval as auditor in the capital market or whose application being suspended from the SEC consideration;
4. being named in a complaint by the SEC or a regulatory body of financial institutions or subject to any legal proceedings following such criminal complaint or having been sentenced to imprisonment by the court’s final judgment except in the cases where the term of imprisonment or the suspension of sentence has lapsed for a period of not less than 3 years in connection with the commission of the following offences:
● dishonest acts in relation to accounting professions;
● an offence regarding documents or accounts as specified, for example, by Section 312 of the Securities and Exchange Act of 1992;
● an offence regarding performance of audit work as specified, for example, by Section 287 of the Securities and Exchange Act of 1992;
● an offence regarding unfair practices in trading securities.
5. not having the following prohibited behaviors:
● lack of professional ethics or violation of or non-compliance with the regulations under the law governing accounting professions and other additional regulations prescribed by the law governing securities and exchange, or aiding or abetting thereof;
● intentionally presenting false statements in material matters, or concealing material facts that should have been stated in any documents subject to be disclosed to the public or filed with the Securities and Exchange Commission, the Capital Market Supervisory Board or the SEC Office; or aiding or abetting thereof;
● dishonest or deceitful acts; or aiding or abetting thereof.
If the aforesaid behaviors occurred more than 10 years ago or such behavior is not so serious that the person should not be entrusted to perform duty as auditor of businesses in the capital market, the SEC may disregard such facts as a cause for consideration of prohibited characteristics of such auditor.
1. Complying with the specified rules:
● performing an audit work in giving opinions on financial statements with accountability in accordance with the professional code of ethics, regulations under the law governing accounting professions, and other additional regulations prescribed by the law governing securities and exchange;
● preparing a summary of types of auditor’s report in a specified form [Form 61-4]
● providing explanation or submitting any other information or taking any other steps as requested by the SEC.
2. Additional duties of the audit firm’s leader:
● performing an audit work in giving opinions on financial statements with accountability in accordance with the professional code of ethics and regulations;
● providing the audit quality control system in compliance with International Standards on Quality Control 1 (ISQC 1);
● monitoring subordinate auditors who are attached to the audit firm to perform an audit work in accordance with the professional code of ethics, regulations under the law governing accounting professions, and other additional regulations prescribed by the law governing securities and exchange;
● cooperating with and facilitating the SEC ’s representative in inspecting the audit quality control system
● providing explanation or submitting any other information or taking any other steps as requested by the SEC .
Termination of Approval
1. the auditor notifies the SEC of the intention to terminate the performance of duty as an SEC-approved auditor
2. the auditor has not performed an audit work or affixed signature in giving opinions on the auditing in relation to the capital market during any period of two consecutive years;
3. the auditor or the attaching audit firm lacks any specific qualifications;
4. the auditor possesses any prohibited characteristics;
5. the approval is revoked or suspended for the remaining approval period.