TDRI QUARTERLY REVIEW

Volume 36, No. 02, Month JUNE, Year 2021, Pages 13 - 22

Suggested modifications of the supervisory laws and regulations for auditors and auditing firms in the thai capital market

Aurapat Wongsaroj

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Auditors in the capital market have an important role to play in developing and promoting the economic expansion of Thailand since they act as intermediaries who help in assuring that a company’s financial statements are reliable and have been prepared according to accepted accounting standards. Such functions build trust in financial information and turn the wheel of the capital market system; in addition, they attract more investors to participate in the market. This in turn positively contributes to the development of the overall national economy However, the current legislation to regulate auditors and auditing firms in Thailand might have some loopholes and unclear legal frameworks with regard to overseeing the regulated entities. Also, some legal provisions might create red-tape and unnecessary burdens for the approved auditors, thus preventing them from entering the market. At the same time, the current sanctions system imposed by the Securities and Exchange Commission (SEC) upon the regulated auditors and auditing firms might not be proper or appropriate anymore in terms of the current economic situation. It is the main objective of this report to analyze the prevailing problems and provide readers with some recommendations to deal with those problems. Following this introduction, this report will be divided into five topics: (1) the current market structure of auditors and auditing firms in Thailand; (2) the current regulatory measures to supervise and control auditors and auditing firms in Thailand’s capital market; (3) review of some international best practices in supervising auditors and auditing firms; (4) some recommendations on the improvement of measures to supervise auditors and auditing firms in Thailand’s capital market; and (5) the conclusion.

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