Audit

We provide assurance services to ensure your financial reports

Audit

We provide assurance services to ensure your financial reports comply with Thai regulations and give confidence to stakeholders. Here is a breakdown of the main services we offer which you would find globally.

  • Audits: Thai audits follow Thai Financial Reporting Standards (TFRS) or International Financial Reporting Standards (IFRS) depending on your company’s situation. A licensed Thai CPA will examine your financial statements and provide an opinion on their fairness according to these standards. This is the most in-depth option offering the highest level of assurance.
  • Reviews: A review involves a qualified accountant performing limited procedures to give some assurance about your financial statement’s fairness. It typically involves analyzing your financials and asking management questions, but not as extensive testing as a full audit.
  • Agreed-Upon Procedures: Here, you and the accountant agree on specific procedures to perform on your financial statements or other relevant information. The accountant’s report details the procedures carried out and the results but won’t express an opinion or provide an overall assurance. This is often used for specific needs like meeting loan requirements.

Audits for Companies Listed in Thailand

Companies listed in Thailand are required to follow the Thai Financial Reporting Standards (TFRS), which are translations of the International Financial Reporting Standards (IFRS) with a one-year delay in effective date from that of the IFRS, except for certain standards like IFRS 17 which will have a different effective date. Publicly Accountable Entities (PAEs), including listed companies, must adhere to these standardsThe TFRS are set by the Thailand Federation of Accounting Professions (TFAC) and are mandatory for domestic public companies

Audits for Private Companies in Thailand

  • The Thai Financial Reporting Standards (TFRS) for Non-Publicly Accountable Entities (NPAEs) are a set of accounting standards tailored for entities that do not have public accountability. These standards are designed to meet the needs of smaller, less complex entities and are based on the simplified financial reporting framework. They cover various accounting topics, including revenue recognition, financial instruments, leases, and property, plant, and equipment.
  • For entities in Thailand that qualify as NPAEs, these standards provide a framework for preparing financial statements that is less complex than the full TFRS, which is based on the International Financial Reporting Standards (IFRS). The TFRS for NPAEs are effective for accounting periods beginning on or after January 1, 2023.
  • In Thailand, private limited companies are required to undergo statutory audits under certain conditions, ensuring compliance with Thai laws and regulations.

What is a Statutory Audit?

A statutory audit is an independent examination of a company's financial statements conducted by a licensed Thai Certified Public Accountant (CPA). The auditor assesses whether the financial statements are presented fairly, in accordance with Thai Financial Reporting Standards (TFRS) or, in some cases, International Financial Reporting Standards (IFRS).

Requirements under Thai Laws

The primary legislation governing statutory audits for private companies is the Accounting Act of 2000. Here's what the law mandates:

  • Mandatory Audits: A private company must undergo a statutory audit if it meets at least one of the following criteria for the preceding fiscal year:
    • Revenue exceeding a specific threshold set by the Ministry of Commerce (exact figure subject to change)
    • Registered capital exceeding a specific threshold set by the Ministry of Commerce
    • Having a certain number of shareholders (exact number subject to change)
  • Auditor Qualifications: Only licensed Thai CPAs registered with the Professional Accounting Council (PAC) can perform statutory audits.
  • Audit Report: The auditor must issue a formal report expressing an opinion on the fairness of the financial statements and their adherence to TFRS/IFRS.