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    Country by Country Financial Reporting and Auditing Framework

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    Thailand – Crowe Horwath ANS (prepared October 2015)

    Preparation of and Filing of Statutory Financial Statements

     

    Corporations and Limited Liability Partnerships (LLPs) are required to prepare annual financial statements and file these with the Revenue Department (RD) and Department of Business Development (DBD).

     

    Public Listed companies (PLCs) are required to file their financial statements with the Stock Exchange of Thailand (SET) within 60 days after the fiscal year-end date and also are required to file their quarterly financial statements with SET within45 days after the period-end date.

     

    All corporations are required to file their financial statements with RD within 150 days after the fiscal year end date and file their financial statements with DBD within30 days after the shareholders' meeting approving their financial statements.

     

    All LLPs are required to file their financial statements with RD and DBD within 150 days after the fiscal year-end date.

     

    All corporations and LLPs are required to prepare full financial statements comprising a statement of financial position, a statement of comprehensive income, a statement of change in shareholders' equity, a statement of cash flows and explanatory notes to the financial statements. Private corporations and LLPs have an option to file abbreviated financial statements. Abbreviated financial statements provide for a statement of financial position, a statement of income, a statement of change in shareholders' equity and less notes disclosures.

     

    All corporations are required to prepare and file consolidated financial statements. However, private corporations and LLPs can take advantage of the option to prepare entity-only financial statements.

     

    Financial Reporting Framework

     

    Listed companies in Thailand are required to prepare their group financial statements in accordance with Thai Financial Reporting Standards (TFRS).  TFRS is converged with IFRS except insurance, agriculture, and financial instruments.

     

    All other corporations/LLPs in Thailand, subject to any other requirements which may be otherwise specified, have the option to prepare their financial statements either in accordance with TFRS or Thai Accounting Standard for Non-Publicly Accountable Entities (NPAEs) promulgated by the Federation of Accounting Profession of Thailand (TAS for NPAEs). TAS for NPAEs is short, simple, and less disclosures.

     

    Audit Requirements for Corporations and LLPs Registered in Thailand

     

    In general, all corporations and LLPs must have an audit on their statutory financial statements.

     

    In addition to the audit of separate statutory financial statements of certain parent companies, their group financial statements are also subject to an audit, if a preparation is required by law.

     

    Audit Exemption

    Subject to the above, for a small LLP, they may qualify for an audit exemption if the LLP meets two of the following criteria:

     

    • has an annual turnover of less than 30 million baht
    • has its register capital of less than 5 million baht

    However, all small LLPs are obliged to have a separate tax audit to serve the tax filing purpose.

    Alternatively, there may be a requirement specified by other third parties for an audit (i.e. in a bank loan/overdraft agreement).

    AuditAppointment,Rotation andJointAudits

     

    Auditors are elected by management and appointed by the shareholders resolution on an annual basis.  Thailand does not have any rules relating to mandatory rotation of audit firms but there are guidelines within the ethical standards regarding partner rotation.  Whilst not prohibited, joint audits are very rare in Thailand.

     

    Auditing Standards

     

    All audit firms in Thailand is required to carry out its audits and express an opinion on the financial statements in accordance with Thai auditing standards (TSA) promulgated by the Federation of Accounting Profession of Thailand (FAP). Those standards require us to comply with the Ethical Standards for Auditors in Thailand. The auditing standards issued by the FAP are consistent with the Clarity ISA issued by the IAASB subject to some minor additional requirements relevant within Thailand.

     

    Ethical Framework

     

    All audit firms in Thailand are bound by the Code of Ethics promulgated by the Federation of Accounting Profession of Thailand (FAP). The Ethical Standards are generally consistent with IFAC Code of Ethics (IESBA) with additional commentary for Thailand.

     

    Audit Regulation

     

    Audit firms in Thailand are subject to the following external and internal monitoring processes with regard to their audit practice.

     

    External monitoring

    The Audit firms are subject to periodic external review by FAP.

     

    In addition to the external monitoring through obligatory reviews by FAP, those audit firms carrying out statutory audits of public listed entities are additionally subject to regular inspections performed by the Securities and Exchange Commission of Thailand (SEC). The SEC performance of inspections is carried out at least every one to three years. These SEC inspections particularly focus on audit quality matters that are unique to public listed entities.

     

    Internal monitoring

    ANS Audit Co., Ltd. has established annual monitoring procedures known as Quality Assurance Reviews (QAR). The internal inspections are led by the Quality Assurance Partner within the firm. The internal inspections are conducted under monitoring procedures as required by Thai Standard on Quality Control 1 (TSQC1) and cover all certified auditors of the firm who perform statutory audit engagements. The results of the annual internal inspections are used to develop and further enhance the quality of the audit processes within the firm.

     

    Transparency Report

     

    There are no transparency report requirements in Thailand.


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