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Regulations
​​​​​​​​​Financial reporting and audit oversight​​​​​


 
2. Auditor supervision

 

2.1 Regulatory Summary of Approved Auditor in Capital Market

 


 

​Auditor wishing to file an application for approval with the SEC must submit the application to be auditor in the capital market (Form 61-1), along with the following documents:

            (1) a certification letter of the applicant as an auditor;

            (2) a profile and details of the applicant;

            (3) a certification letter from the leader of the audit firm;

            (4) a covering letter on delivering of documents about the audit firm;

            (5) a copy of registration certificate as a juristic person or as a group of persons;

​   (6) a copy of financial statement of the latest three years, or, in case of a registered group 

                 of persons, profit and loss statements of the latest three years;

           (7) ​a profile and relevant details of the audit firm;

           (8) a certification and consent letter of the audit firm (Form 61-2);       

           (9) a copy of the applicant's membership of the Thailand Federation of Accounting                                   Profession and a copy of renewal of such membership;

        (10) a copy of license for performing accounting professions and a copy of license renewal;

         (11) ​a copy of shareholder list (Form BorOrJor.5).

          Period of Approval Validity: not over five years per period

          2.1.2 Qualification of Approved Auditor 

​An auditor to be granted approval by the SEC shall possess qualifications of an individual person and of the firm to which the auditor is attached as prescribed by the regulations summarized below:

​​Individual Qualifications

(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) ​having performed audit duties for at least ten years; 

(4) having affixed signatures in auditing and giving opinions on financial reports for not less  than three years during the period of five years before the date of filing the application; or ​

(a) ​​having affixed signatures for giving audit opinions on financial reports for not less than two years ​during the period of five years before filing an application, and having​ worked as an audit supervisor or a final reviewer for four years, making a total required period of six years; or
(b) 
​​​having affixed signatures for giving audit opinions on financial reports for not less than one year during the period of five years before filing an application, and having worked as an audit supervisor or a final reviewer for four years, making a total required period of six years; or

(5) ​having affixed signatures for giving audit opinions on financial reports of three entities in   the year before filing an application for approval.  Such entities should be sufficiently               sizable with appropriate complexed transactions and do not operate in the same business       industries; 

(6) ​being attached to only one qualified audit firm; 

(7) ​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 full-time CPAs and full-time assistant auditors as required by the SEC.


 

         2.1.3 Prohibited Characteristics of Auditors 

(1) ​​being put under receivership by the court's order; or being an insolvent, incompetent or quasi-incompetent person;

(2) with an CPA license being suspended;

(3) ​having a record of being revoked from CPA status, unless where the reapproval has lapsed for a period of not less than three years prior to filing an application; 

(4) ​with a CPA license suspended during the last three years before filing an application, unless the cause of such suspension is the same as of the SEC's suspension or revocation of the approval as auditor in the capital market;

(5) ​​being suspended or revoked approval as auditor in the capital market or whose application in the duration of being declined from the SEC consideration;

(6) ​​ being named in a complaint by the SEC or financial institutions regulatory body 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 three 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 as specified, for example, by Section 287
         of 
the​ Securities and Exchange Act of 1992;

               ● ​​an offence regarding unfair securities trading activities.

​​(7)​​ ​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 ten years ago or such behavior is not severe to the extent that the person should not be entrusted to perform duty as auditor of entities in the capital market, the SEC may disregard such facts as a cause for consideration of prohibited characteristics of such auditor.

 

2.1.4 Post-Approval Duties

(1)​ ​​​Complying with the specified rules:

    • ​​​​​performing an audit work in giving opinions on financial statements with responsibility 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;

    • ​​​p​reparing a summary of types of auditor's report in a specified form (Form 61-4);

    • ​​​​providing an explanation or submitting any other information or taking any other ​          actions as required 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;

    • provisioning the audit quality control system in compliance with International Standards on Quality Control 1 (ISQC 1);

    • monitoring associated auditors who are attached to the 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 an explanation or submitting any other information or taking any other actions as required by the SEC.

 

2.1.5 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 or the attaching audit firm lacks any specified qualifications;

(3) the auditor possesses any prohibited characteristics;

(4) the approval is revoked or suspended for the remaining approval period by the SEC.

For More Information

​Audit Oversight Department

Tel. +66-2263-6097 / +66-2263-6096