Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Federation of Accounting Professions

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Thailand


    2. Name of member body:
      Federation of Accounting Professions

      Or please specify name:



    3. Individual responsible for preparation:
      Professor Kesree Narongdej


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      /



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      ASEAN Federation of Accountants (AFA)



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: The Accounting Act B.E. 2543, The Auditors Act B.E. 2505, The Civil and Commercial Code (Partnership and company), The Securities and Stock Exchange Act. B.E. 2535, The Public Companies Act B.E. 2535,2544 (revised)
      b). the Enacting body: The Ministry of Commerce, The Office of the Securities and Exchange Commission, The Ministry of Finance, Bank of Thailand, The Revenue Department, Department of Insurance
      c). date the Act or Code came into force: /


    25. How can IFAC obtain a copy of the Act or Code?
      (Please see www.moc.go.th)


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify): Public Companies not listed on the Stock Exchange of Thailand
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities
      Private companies
      Governmental
      Not-for-profit
      Other (please describe) All companies Annual Financial Statements are required to be prepared by all companies in accordance with accounting standards issued by FAP and approved by the Board of Supervision of Audit Practices (BSAP). Companies may adopt other standards where there are no equivalent Thai standards on specific subject matters, in which case such other standards must be issued by authoritative body. In practice, companies would choose to adopt IFRS to ensure compliance with the Thai framework which replicates "IFAC" Framework
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Quarterly financial statements of listed companies are required to be reviewed by the companies' auditors in accordance with review standards issued by FAP. Such standards are based on and similar to standards issued by IFAC.
      Private companies
      Governmental
      Not-for-profit
      Other (please describe) All companies Annual financial statements of all companies and half-year financial statements of banks and other financial institutions are required to be audited in accordance with auditing standards issued by FAP. Such standards are based on and similar to standards issued by IFAC.
      Other (please describe) All companies


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:
      The Bank of Thailand requires rotation of auditors (not audit firms) of banks and other financial institutions every 5 years. An auditor who is rotated out may be reappointed after the period of years. In all other cases there are no requirements on rotation.



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      N/A
      Details can be requested from
      1. Stock Exchange of Thailand (SET) (www.set.or.th)
      2. The Office of the Securities and Exchange Commission, Thailand (SEC)
      (www.sec.or.th)

    2. the Enacting body(ies)

      n/a

    3. the latest amendment date?

      n/a


    35. How can IFAC obtain a copy of the Legal authority?
      n/a


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:
      n/a


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:
      Please contact SEC and SET for details


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      Only where listed companies are banks and other financial institutions regulated by the Bank of Thailand. Rotation requirement is set by the Bank of Thailand. In all other cases there is no requirement for rotation.



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Auditors Act FAP
      Other (please describe) Public Limited Companies not listed on the Stock Exchange of Thailand FAP
      Other (please describe) Private Limited Companies FAP
      Other (please describe) Registered Partnerships FAP

      a. How can IFAC obtain copies of these documents?

      Obtain from FAP's website (www.icaat.or.th)

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (FAP)


    44. For FAP, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Self-regulating professional organization

      b. Name of standards

      Thai Standards on Auditing


    45. How many voting members does the standard-setting body have?
      Minimum of 21 persons


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The Standards on Auditing Committee is composed of partners from local and international audit firms, representatives from the regulators (the Ministry of Commerce, the Securities and Exchange Commission, the Stock Exchange of Thailand, the Bank of Thailand, the Insurance Department) and academics from universities .


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Chairman of the Standards on Auditing Committee is appointed by the President of FAP. The Chairman selects committee members and proposes to the President for approval and appointment. The President approves and appoints committee members.


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      30 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      00

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      00



    52. To what entity is the standard-setting body accountable?
      The Standards on Auditing Committee is established by FAP. FAP is responsible for issuing standards on Auditing. FAP acts as the National Professional Body responsible for setting standards on auditing and assurance services.


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Exposure drafts are presented on FAP's website. Public seminars are held to present and discuss the exposure drafts and collect comment. The exposure drafts are open for comments for six months after initial public seminar.

    2. accessibility of meetings (i.e., public or private)

      Seminars are open to the public. Considerations of comments are held during private meetings of the Standards on Auditing Committee. Significant issues are presented to FAP's Board Meetings for comments and/or resolutions.

    3. approval process for final standards (i.e., majority required to approve final standards)

      As member of IFAC, FAP issues standards on auditing based on and similar to those issued by IFAC. Exposure drafts are finalised by the Standards on Auditing Committee after due consideration of comments received. The substance of comments on exposure drafts and resolutions are presented to FAP's Board Meeting for consideration or acknowledgement. Final drafts are proposed to FAP's Board for approval to issue as standards. FAP's Board Members have a further one month to consider the final drafts. Final approval is given at FAP's Board Meeting. A majority is required to approve the standards.

    4. other relevant due process activities

      -


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Ministerial regulations Board of Supervision of Audit Practices
      Professional Accountants in Business
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      FAP through its Professional Ethics Committee has been responsible for drafting the ethics standards for certified public accountants in public practice as appearing in the Ministerial Regulation.

      The current ethic standards under the Ministerial Regulations are applicable only to certified public accountants in public practice. A new code of Ethics for professional accountants, similar to those of IFAC has been drafted.


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Board of Supervision of Audit Practices)


    56. For Board of Supervision of Audit Practices, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Part of Ministry of Commerce

      b. Name of standards

      Ministerial regulations on Ethics of Certified Public Accountants


    57. How many voting members does the standard-setting body have?
      15


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: -


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The Board of Supervision of Audit Practices (BSAP) is made up of 15 members of which 5 are from the public sector by their positions, 2 from public universities by their positions, and 8 other members appointed by the Commerce Minister (not less than 4 of the 8 members must be C.P.As.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The composition of members of the BSAP is prescribed by law under which the BSAP is established. Appointments are as explained in question 59 above.


    61. What is the term of appointment for members?
      Year(s)


    62. For how many years has the standard-setting body been in existence?
      Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      00

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      00



    64. To what entity is the standard-setting body accountable?
      The BSAP is accountable to the Commerce Minister.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Exposure drafts are presented at public seminars for hearing, discussions and comments.

    2. accessibility of meetings (i.e., public or private)

      -

    3. approval process for final standards (i.e., majority required to approve final standards)

      -

    4. other relevant due process activities

      -


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      At least, the accountants/ auditors have to graduate with a Bachelor Degree in Accounting or equivalent


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      Requirements to operate as an accountant
      The Accounting Act B.E. 2543 require persons who work in a position equivalent to the number one person responsible for accounting function of companies to possess at least a diploma in accounting or bachelor's degree in accounting from local or foreign universities accredited by the Department of Business Development, Ministry of Commerce, depending on the size of the companies. A bachelor's degree requirement applies to companies with issued share capital, or total assets or total revenues exceeding Baht 5 millions, Baht 30 millions or Baht 30 millions respectively. (The current exchange rate is Baht 40 per USD) A diploma requirement applies to companies whose share capital, or total assets, or total revenues, are less than as defined above.

      Requirements to operate as an auditor
      The Auditors Act B.E.2505 establishes the qualifications of certified public accountants (CPAs). The Board of Supervision of Audit Practices (BSAP) established under the Auditors Act, as a part of the Department of Business Development of the Ministry of Commerce, establishes rules for who can practice as auditors. Those who can practice as auditors must hold a C.P.A. licence.
      To become a C.P.A. a person must hold a bachelor's degree in accounting(or equivalent), has not less than 3,000 hours of training experience in auditing under the supervision of C.P.As., and possess the qualifying examination to become a C.P.A. Continuing professional development is required to maintain the C.P.A. status.
      To act as auditors of listed companies, approval of the Securities and Exchange Commission (SEC) is required. Approval is granted based on satisfactorily conclusion from periodic quality reviews of the C.P.A.'s work. Such reviews are undertaken by a special quality review unit established by FAP. Auditors of banks and other financial institutions regulated by the Bank of Thailand require the approval of the Bank of Thailand. Such approval is normally granted on the basis of the SEC's approval.


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      Bachelor's degree in Accounting (or equivalent)
      Professional examinations
      Practical experience
      Minimum of 3,000 hours audit training within 3 years under the supervision of C.P.As.
      Final qualifying examination
      Qualifying examinations in five papers (Accounting, Auditing 1, Auditing 2, Laws relating to audit profession, the Use of Computers in Auditing) A candidate may take exams in any or all of the papers at any time after meeting the academic requirement. However, to be granted a C.P.A.license, a person must have completed the 3,000 hours training requirement.
      Other (please describe) Continuing Professional Development
      To maintain the C.P.A license, a C.P.A. who does not practice is required to complete a defined CPD. Currently CPD is not a requirement for practicing C.P.As. Revised C.P.D. requirements covering all C.P.A., whether in public practice or not, are under proposal.


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      Auditing - Board of Supervision of Audit Practices (BSAP), Department of Business Development, Ministry of Commerce.
      Accounting - Department of Business Development, Ministry of Commerce

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      -

    2. How many voting members does the relevant body(ies) have

      -

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: -

    4. For how many years has the body been in existence?

      Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe) -

    72 a. How can IFAC obtain copies of these documents?

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain) -


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      The Board of Supervision of Audit Practices


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      Board of Supervision of Audit Practices grants the C.P.A. license


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      Auditors of listed entities require the approval of the Securities and Exchange Commission.
      C.P.A. who seek such approval are required to have their audit work reviewed by a special quality review unit established by FAP. The SEC's approval is granted based on satisfactory conclusion from the quality review. Approval is granted for a five year period. Re-approval requires repeated quality review.



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government Ministry of Finance Ministry of Finance
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      N/A

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Ministry of Finance)


    83. For Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body



      b. Name of standards



    84. How many voting members does the standard-setting body have?


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    91. To what entity is the standard-setting body accountable?


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity
      Other (please describe) The Board of Supervision of Audit Practices, Department of Business Development, Ministry of Commerce 2000 The Thai Accounting Standard Committee (TASC) under the Federation of Accounting Professions (Based on and similar to IAS)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Contact FAP
      Public entities must follow all mandatory accounting standards where as private entities must follow all except seven of the standards including:
      1. TAS 25 Statement of Cash Flows
      2. TAS 36 Impairment of Assets
      3. TAS 44 Consolidated Financial Statements
      4. TAS 45 Accounting for Investment in Associates
      5. TAS 47 Related Party Disclosures
      6. TAS 48 Financial Instruments: Disclosures and Presentation
      7. TAS 50 Segment Reporting


      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (The Thai Accounting Standard Committee (TASC) under the Federation of Accounting Professions (Based on and similar to IAS))


    95. For The Thai Accounting Standard Committee (TASC) under the Federation of Accounting Professions (Based on and similar to IAS), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Independent Organization

      b. Name of standards

      The Thai Accounting Standards


    96. How many voting members does the standard-setting body have?
      23


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The members of the standard setting body include academicians from universities, auditors from local and international audit firms, representatives from related regulators including the Bank of Thailand, the Stock Exchange of Thailand, the Securities and Exchange Commission the Revenue Department, the Board of Supervision of Audit Practices, and also representatives from the business community.
      Qualifications of its members includes professional working in public and private sectors with educational backgrounds ranging from bachelor's degrees in accounting to those with doctorate degrees in accounting.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The President of the Federation of Accounting Professions.


    100. What is the term of appointment for members?
      2 Year(s)


    101. For how many years has the standard-setting body been in existence?
      20 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      00

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      00



    103. To what entity is the standard-setting body accountable?
      The Thai Accounting Standard Committee (TASC) is under the Federation of Accounting Professions (FAP).


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The approved standards are announced as the statute by the Department of Business Development, Ministry of Commerce and also are available at the Federation of Accounting Professions (FAP).

    2. accessibility of meetings (i.e., public or private)

      The meeting is private and held at FAP

    3. approval process for final standards (i.e., majority required to approve final standards)

      Please see due process in Q104 d.

    4. other relevant due process activities

      FAP issues the Accounting Standards based on and similar to those issued by IASB, with only a few exceptions where circumstances are not appropriate. The due process of standard setting is as follows:
      1. The Accounting Standard Committee would appoint the Steering Committee as the working group. The Composition of the Steering Committee includes the representatives from the Thai Accounting Standard Committee, academicians, auditors, accountants and the parties whom would be affected if the new accounting standards are adopted. The Steering Committee would translate the IAS and study the available of other internationally accepted accounting standards, the potential problems, alternative of different accounting treatment they found, and the readiness of the business communities to follow the standards.
      2. The Steering Committee informs their findings to the Accounting Standard Board for Approval.
      3. The Accounting Standard Committee submits the draft to the FAP board and asks for the approval to hold a public hearing.
      4. The Accounting Standard Committee, the FAP, holds a public hearing to clarify the issues to business communities and receive comments from parties whom may be affected by the standards.
      5. The Accounting Standard Committee discusses the issues received from the public hearing, identify alternatives to solve the problems and improves the standard.
      6. The Accounting Standard Committee submits the revised draft along with the basis for conclusion to the FAP board to approve and announce as an exposure draft. Business entities may voluntarily choose to comply with the exposure draft.
      7. The Accounting Standard Committee will examine the impact of the standard on the related parties and the implementation problems occurred from adopting the exposure draft.
      8. The Accounting Standard Committee submits the standard to the FAP Board, which approves the standard and submits it to the supervisory board of the Department of Business Development, Ministry of Commerce, which then legalize the standard.


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      12 Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      The Stock Exchange of Thailand (SET) and the Securities and Exchange Commission (SEC)


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      -


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      Auditors of listed companies require the approval of the SEC. Approval is granted based on satisfactory conclusion from quality reviews of the auditors' work. The SEC also questions or investigates auditors of listed companies relating to specific situations affecting the financial statements (including quarterly statements) of listed companies, and companies seeking listings. The SEC has the power to suspend auditors or withdraw its approval of auditors from acting as auditors of listed companies based on the results of such investigations.

    2. accounting and auditing standard-setting

      The SET and SEC are not involved directly in the standard setting. Both organizations have representatives on the accounting and auditing standards committees described in question 98 and 47.

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      The SEC monitors compliance with accounting and disclosure requirements on a continuing basis. Annual and quarterly financial statements are reviewed for compliance. Modified audit and review reports are reviewed to identify issues of concern affecting financial statements and investors. Corrective actions are taken as necessary in cases of non-compliance.



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      The Stock Exchange of Thailand



    Section 10B -- Stock Exchange
    The Stock Exchange of Thailand Details


    110. For The Stock Exchange of Thailand, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      N/A

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      N/A

    3. How enforcement actions are administered.

      N/A



    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?

      -

    2. The number of members on the oversight body

      -

    3. Its powers

      -

    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations

      -

    5. The sanctions the oversight body may impose in the event of non-compliance

      -

    6. How the oversight body is accountable to any public institution or body

      -


    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      The Bank of Thailand (BOT) acts as the regulator. Banks and similar financial institutions are required to prepare general purpose financial statements in accordance with Thai Accounting Standards similar to other limited companies. However, the BOT issues regulations specific to certain aspects of accounting, for example basis for making loan loss reserve. Such regulations may or may not comply with accounting standards. Where regulations are in conflict with accounting standards, modifications to the auditor's report would need to be considered. Banks and similar financial institutions are also required to submit various forms to the BOT for use only by the BOT. Such forms follow strictly the regulatory reporting requirements. The information contents in many parts are reconcilable to the general purpose financial statements.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      The BOT is responsible for monitoring and enforcing compliance with accounting and auditing requirements. - Auditors of banks and similar financial institutions require the approval of the BOT. Approval is normally granted on the basis of the SEC's approval referred to in question 81. - Auditors are required to submit audit programs to the BOT for review by the BOT annually. -The BOT carries out periodic examinations of banks and other financial institutions under its regulation. Such examinations cover compliance with accounting requirements and BOT's regulations. Formal reports and findings are sent to the management of the banks and financial institutions. - The BOT carries out reviews of annual, half-year and quarterly financial statements of banks and other financial institutions on a regular basis. Such reviews may trigger on inquiry or investigation of the entity concerned. - The BOT requires banks and financial institutions to submit half-year general purpose financial statements which must be audited, a requirement unique to banks and other financial institutions.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The BOT has no direct role in the regulation of the audit profession. However, FAP's Board, the Standards on Auditing Committee of FAP, and the Professional Ethics Committee of FAP have representatives from the BOT.

    2. accounting and auditing standard-setting

      The BOT is represented in the various committees as described in (a) above.

    3. review of financial statements prepared by listed entities

      The BOT carries out regular reviews as explained in question 113 above.

    4. enforcement of accounting, reporting and auditing requirements

      The BOT's role is as explained in question 113 above.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      The Bank of Thailand


    116. What is the source of Legal authority of the regulatory authority(ies)?
      similar to section 10 D


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      similar to section 10 D

    2. accounting and auditing standard-setting

      similar to section 10 D

    3. review of financial statements prepared by listed entities

      similar to section 10 D

    4. enforcement of accounting, reporting and auditing requirements

      similar to section 10 D



    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      The Department of Insurance, attached to the Ministry of Commerce, Acts as the regulatory authority


    119. What is the source of Legal authority of the regulatory authority(ies)?
      The Insurance Act B.E. establishes the legal framework for the regulation of insurance companies.


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      The Department of Insurance has no direct role. However, it has representative on the Standards on Auditing Committee of FAP. It is also consulted on issues affecting insurance companies on ad-hoc basis.

    2. accounting and auditing standard-setting

      Accounting and Auditing Standard setting is the responsibility of FAP. The Department of Insurance has no direct role. However, it has representatives on the Standards on Auditing Committee, and a representative is normally invited on accounting issues affected insurance companies. However, for regulatory reporting purposes, insurance companies are required to prepare and submit to the department another set of financial statement prepared on bases prescribed by the department. These statements are also required to be audited. The department also issues accounting practice guidelines for transactions specific to the insurance industry not addressed by accounting standards.

    3. review of financial statements prepared by listed listed entities

      Some insurance companies are listed and some are not listed. A designated unit reviews financial statements of all insurance companies (listed and unlisted) for compliance with accounting and disclosure requirements and for other issues of regulation concerns.

    4. enforcement of accounting, reporting and auditing requirements

      In relation to assurance work other than audits of financial statements, insurance companies are required to engage C.P.As. to provide assurance on certain aspects of internal control. To be eligible for this engagement, the C.P.A has to have approval of the Insurance Department. The subject matters and criteria are defined by the department. Approval is granted based on satisfactory conclusion of quality reviews of audit work and independence status. Such reviews are performed by a designated unit of the Department of Insurance. Where the C.P.A. is approved by the SEC to act as auditor of listed companies, approval by the insurance department requires no quality review of audit work.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      N/A


    122. What is the source of Legal authority of each regulatory authority?
      N/A


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      N/A

    2. accounting and auditing standard-setting

      N/A

    3. review of financial statements prepared by listed listed entities

      N/A

    4. enforcement of accounting, reporting and auditing requirements

      N/A



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      The Securities and Exchange Commission, Ministry of Commerce and FAP monitor the work of auditors to ensure the quality of their work. For example, from time to time SEC would review the workpapers of the spot-checked CPAs.



    125. Under what authority does the organization conduct the program of quality assurance review?
      -


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      staff from the national professional organization.



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Ministry of Commerce, Securities and Exchange Commission and Bank of Thailand


    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      -


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      -


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      -


    134. What is the term of appointment for members?
      Year(s)


    135. For how many years has the body been in existence?
      Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      00

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      00 (specify currency)



    137. To what entity is the body accountable?
      -


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      Day(s)



     

     

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