Overview of Auditing Practices in Thailand: Key Insights into Thailand’s Financial Compliance

Companies in Thailand that have recently concluded their fiscal year are preparing to submit their audited financial statements as the audit season unfolds. The annual audit season in Thailand typically spans from April to June. At BizWings Thailand, we have prepared this overview to help foreign companies based in Bangkok navigate the complexities of financial compliance.

Audit firms safeguard compliance for international companies in Thailand

The Thai government requires statutory audits to ensure that domestic and international businesses comply with the Thai Financial Reporting Standards (TFRS). The TFRS is also closely aligned with the International Financial Reporting Standards (IFRS). Audit firms play a key role in checking compliance with these local accounting standards and global practices. According to the Accounting Act of 2000, companies must file their audited financial statements with the Ministry of Commerce within 150 days following the end of their fiscal year.

Thai auditing practices are governed by the Thai Auditing Standards (TSA), which have been harmonized with the International Standards on Auditing (ISA). This standardization is aimed at ensuring consistency and global comparability in financial reporting. The Federation of Accounting Professions (FAP) is responsible for translating and adopting these standards into the TFRS and the auditors must then follow them strictly.

Understanding Thai auditing requirements and standards

Audited financial statements of legal entities must be certified by an independent authorized auditor. These audited financial statements must be submitted annually to both the Department of Business Development (DBD) under the Ministry of Commerce and the Revenue Department (RD) of the Ministry of Finance.

There are specific exemptions that are granted for registered partnerships with registered capital less than 5 million baht, total revenue not exceeding 30 million baht, and total assets not exceeding 30 million baht where their financial statements do not need to be certified by authorized auditors.

The annual audit process involves not only the review and certification of financial statements but also the holding of an annual general meeting (AGM) to approve the audited accounts and the timely submission of all required documents to the relevant authorities.

Non-compliance with Thailand’s audit and tax regulations can lead to several penalties ranging from heavy fines, business suspension or closure, increased scrutiny from authorities, and significant reputational harm. Criminal charges may be imposed for the more serious violations, such as tax evasion, which can lead to imprisonment and substantial financial penalties, including fines of up to 200% of the evaded tax plus interest.

Understanding the typical auditing process

The audit process usually begins with an engagement and planning phase, where auditors work with management to set audit objectives, such as the deadline. During this phase, the auditors usually identify high-risk areas such as revenue recognition or inventory valuation based on historical reporting and the relevant regulations.

The next step is usually followed by a risk assessment, where auditors review internal controls, such as approval processes and access management, to identify weaknesses that could lead to financial errors or fraud, laying the foundation for subsequent field work.

Then the field work follows, where the auditors examine financial records, verify account balances, confirm transactions, and review related documents to ensure accuracy. Typically, auditors would perform cross-checking of accurate bookkeeping to ensure that all transactions are recorded properly.

Finally, the auditor summarizes the audit findings, discusses adjustments with management, and prepares an audit report.

How BizWings can support your audit and compliance needs

At BizWings Thailand, our audit team is led by a managing director with over 20 years of accounting and auditing experience. Our team has Certified Public Auditor licences from both Thailand and Japan. For companies that rely on BizWings for bookkeeping and accounting services, we can provide comprehensive audit support to help you prepare for statutory requirements and maintain compliance. For businesses that do not use our accounting services, BizWings Audit can perform fully independent statutory audits in accordance with Thai standards.

For more information, contact us at contact@bizwings.co:

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