Kingdom of Thailand : Accounting and Auditing
Thailand has made great efforts over the past ten years to improve the quality of corporate financial reporting. Considerable progress has been made on various fronts to strengthen the institutional framework of accounting and auditing, and to move...
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| Language: | English |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/04/10038403/kingdom-thailand-report-observance-standards-codes-rosc-accounting-auditing http://hdl.handle.net/10986/8052 |
| Summary: | Thailand has made great efforts over the
past ten years to improve the quality of corporate financial
reporting. Considerable progress has been made on various
fronts to strengthen the institutional framework of
accounting and auditing, and to move towards converging Thai
national accounting and auditing standards with
international benchmarks. This report focuses on areas where
stakeholders in the accounting profession in Thailand could
consider making changes to strengthen the profession and
increase consistency with global benchmarks. The Federation
of Accounting Professions (FAP) is the self-regulatory
professional body, which is a member of the International
Federation of Accountants. The FAP is also the
standard-setter, perhaps overly stretched with many
responsibilities covered by the volunteer efforts of its
members. The FAP develops and reviews accounting standards,
as well as audit and ethics standards in line with
international good practices. Thailand has in place
legislation governing the creation and responsibilities of
entities engaged in commercial activities: the accounting
act, the accounting professions act, and the public limited
companies act. The accounting standard-setting committee
reviews international standards and issues these as national
standards, through the government processes, thereby
significantly reducing the gap between Thai accounting
standards and international standards. To aid in the
implementation of Thai accounting and auditing standards,
there is a need to improve the institutional framework,
including the development of a standard-setting strategy and
implementation plan, to enhance practical compliance and
enforcement of standards. The Securities and Exchange
Commission of Thailand (SEC) has established a monitoring
and enforcement process. The SEC accounting supervision
department co-operates with the federation of accounting
professions on evaluation of the quality of auditors.
Enriched by significant input from stakeholders, this report
makes recommendations for enhancements to the statutory
framework, for institutional and policy development;
independent reviews of audit practices; development of a
strategy for continued convergence of Thai and international
accounting standards with adoption of International
Financial Reporting Standards (IFRS) for public interest
entities; broader training programs on practical application
of the new accounting and auditing standards, and code of
ethics for professional accountants; and continued
development of accountancy curricula and teaching in
universities throughout the country. |
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