Annual Financial Statements Audit Services for Thailand Business.
In Thailand Law, all juristic companies, partnerships, branches of foreign companies and joint ventures are obligated to prepare financial statements for each accounting period. The financial statements must be audited and subjected to the opinion of a certified Thai auditor (CPA).
Failing to do so is a criminal offence and in this regard may result in a Fines amounting up to 200,000 THB.
Objectives of Auditing Financial Statements.
⇒ To have an independent auditor (CPA) examine the financial statements and provide assurance that the management has presented financial statements that are free from material error and provides with a true and fair view of its financial performances.
⇒ To ensure the adequate disclosure of material matters and the proper presentation of the financial statements.
⇒ To determine whether the financial statements comply with the relevant statutory requirements and the Thai Standards on Auditing (TSA) and Thai GAAP/Thai Accounting Standard and International Financial Reporting Standard (IFRS).
Required documents of Annual financial statements audit.
- Income and expenses for the year Ex. Government receipts plus the form PND 1, 3, 53., PP 30, 36 and Social Fund.
- Bank statement for every corporate bank account (current, saving account) ,etc.
- Inventory (if any), Stock Cards, etc.
- Lease agreement, Services agreement, BOI License, etc.
- Half Year Report. (PND 51)
- Annual Audit report for the previous year (Financial Statement, Auditor Report, PND 50 including General Ledger (GL), Trial Balance (TB) and Assets Register)
The following are the main types of Financial Statements Audit.
Income Statement :: This is the statement of the financial performance of a company
- Balance Sheet :: The balance sheet reports the financial position of the company at the end of the fiscal year (or at any other point in time a balance sheet is prepared; for example, companies are usually required to submit a balance sheet when applying for a loan). It reveals the value of assets, liabilities, and equity of a company.The items in the assets and liabilities columns are presented in order of liquidity, with the most liquid items reported first. The auditor may verify the existence of assets and liabilities, and the accuracy of the figures presented.
- Cash Flow Statement :: The cash flow statement may also be included in the audited financial statements. The cash flow statement reveals the cash inflows and outflows during the fiscal year. It provides an insight into the company’s ability to meet its short-term obligations and continue operating in the foreseeable future. The auditor may verify the entries in the cash flow statement against the bank statement and also check the accuracy of the footnotes.