The Securities Exchange Commission (SEC) of Thailand and the Office of the Auditor General of Thailand (OAG) have signed a Memorandum of Understanding to enhance the audit quality of state owned enterprises (SOEs) listed on the Stock Exchange of Thailand (SET).
The agreement comes as the country is required to comply with international audit standards which come into effect later this year.
The collaboration is supported by the World Bank under the First Initiative Project, Thailand: Enhancing Securities Exchange Commission Audit Capacity. The OAG has joined the project to ensure SOEs comply with international audit standards, and the World Bank will provide an expert on these standards to train OAG officers, as well as sponsoring their registration fees.
The training will be based on the Institute of Chartered Accountants of England and Wales, while the SEC will co-ordinate with SEC-approved auditors to allow OAG officers to observe their overseas branches. The collaboration will also provide OAG officers with an opportunity to share knowledge and experience.
SEC secretary-general Vorapol Socatiyanurak said as the majority of listed SOEs are large organisations and account for 17% of market capitalisation, the project will “enhance confidence in the quality of financial statements of listed firms in the Thai capital market, hence, boost market competitiveness and attract worldwide investors”.
OAG deputy auditor general Prapee Ankinandana added the collaboration gives its officers “more opportunities to enhance their knowledge on international audit standards” and could help to “further improve” its own quality assurance systems.
“At the end of the day, investors will be more confident in financial statements of state owned enterprises,” Ankinandana said.