New FAPThai Audit rules aim to improve quality
On 17 December 2013, a new Federation of Accounting Professionals (FAP) regulation was published in the Royal Gazette to limit the number of financial statements that can signed by an auditor in a given year.
Keywords: Mazars. Thailand, Audit, FAP, Financial Statements, International Auditing Standards, Audit Ethics
27 February 2014
From 2014 onwards, a Thai auditor is able to conduct an audit and give an opinion on no more than 200 financial statements in a financial year. This is to ensure maintenance of professional knowledge and skill at the level required to ensure that clients or employers receive competent professional service, following the Code of Ethics for Professional Accountants B.E. 2553.
This measure is also aimed to ensure that the signing lead auditor applies sufficient personal time to meet their responsibilities under Thai and International Auditing Standards in respect of Planning the Audit, Audit Risk Assessment, Review of the Audit Team’s Work and Audit Completion.
Mazars’ opinion: We fully agree with the FAP’s new regulation’s objective to improve the overall quality, professionalism and reliability of audit in Thailand. We also hope the maximum number of financial statements to be signed by a Thai auditor can be even further reduced in the future to assist with this goal.