SEC and SET upgrade internal audit standards for IPOs

Prachachat•Economy•1d ago

Reader Briefing

The SEC and the SET are collaborating to upgrade internal audit quality and requirements starting from the IPO stage to enhance corporate governance.

•The SEC is discussing the upgrade of qualifications for internal auditors, particularly for companies seeking IPOs.
•The SEC emphasizes a shift for internal auditors to become proactive partners and an Early Warning System for risk management.
•The SET aims to increase tools for audit committees and internal auditors to detect suspicious transactions faster.

Overview

•Pronong Busaratrakul of the SEC is pushing to raise the quality of internal auditors starting at the IPO entry point before extending the standards to listed companies.
•The SEC views higher qualifications for internal auditors at the IPO stage as a way to create confidence that duties will be performed with quality.
•Pronong Busaratrakul stated that professional certifications alone do not guarantee quality, as the focus must be on actual work results and risk management.
•The SEC identifies three priority areas for internal control: proactive risk management, actual effectiveness over 'Tick the Box' compliance, and creating 'Tone at the Top' from executives.
•Pronong Busaratrakul noted that listed companies face new challenges and risks from technologies such as Artificial Intelligence (AI) and quantum technology.
•Assadech Kongsiri of the SET observed that some suspicious transactions may only appear in reports several years after they occurred.
•Assadech Kongsiri seeks to provide more tools to audit committees and internal auditors to ensure accurate information reaches investors more quickly.
•Assadech Kongsiri stated that internal auditors should be viewed as strategic partners to management rather than just the 'police' of the organization.

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Source: Prachachat (Original)

Key Quotes

Pronong Busaratrakul

"A sustainable business is not one that has never had problems, but one that has a sufficiently good immune system to handle various problems and risks."

กิจการที่จะยั่งยืน ไม่ได้เป็นกิจการที่ไม่เคยมีปัญหา แต่กิจการที่จะยั่งยืนคือกิจการที่มีระบบภูมิคุ้มกันที่ดีพอที่จะรับมือกับปัญหาและความเสี่ยงต่าง ๆ ได้

Key Entities

Person

Pronong Busaratrakul(พรอนงค์ บุษราตระกูล)

Secretary-General of the Securities and Exchange Commission.

Assadech Kongsiri(อัสสเดช คงศิริ)

President of the Stock Exchange of Thailand.

Organization

Securities and Exchange Commission(สำนักงานคณะกรรมการกำกับหลักทรัพย์และตลาดหลักทรัพย์)ℹ️

The regulatory body overseeing securities and exchange in Thailand, referred to as the SEC.

Stock Exchange of Thailand(ตลาดหลักทรัพย์แห่งประเทศไทย)ℹ️

The main stock exchange of Thailand, referred to as the SET.

Listed Company Association(สมาคมบริษัทจดทะเบียน)

An organization the SEC is ready to work with to create a transparent and reliable Thai stock market.