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86 Annual Report 2012
Audit Committee Report
The Stock Exchange of Thailand (SET)’s Audit Committee is comprised of three independent directors with expertise and
experience in accounting, finance and auditing; it is chaired by Ms. Kaisri Nuengsigkapian, CPA, with Mr. Paiboon Nalinthrangkurn
and Mr. Subhak Siwaraksa as members.
The Committee held twelve meetings in 2012, including one with key members of executive management without the
presence of internal auditors. There were three meetings with the external auditors to review the auditor’s plans and audit scope,
and discuss the results of the audit work and observations made by the auditors. Two of these meetings with the external
auditors were without the presence of management to ensure the auditor’s independence. The attendance record of the Audit
Committee’s members is shown in the Corporate Governance Report on page 74
The Committee has performed their duties and exercised due authority under the scope of authority and responsibilities
assigned by the Board as set out on page 79. The Committee has formally reported on all matters within its duties and responsibilities
to the Board on a quarterly basis. A summary of major activities is as follows:
• Financial statements: The Committee reviewed SET’s quarterly statements by meeting with Management and reviewed
the annual financial statements for 2012 by meeting privately with the external auditor to consider the accuracy and
completeness of the information disclosed, including on related party transactions, internal control in the preparation
of the financial statements and compliance with generally accepted accounting standards.
• Risk management: The Committee considered the enterprise risk management policy and process by meeting with the
head of the Enterprise Risk Management unit on a quarterly basis. Annually, the Committee also met with the Risk
Management Committee to ensure that the audit plan was established in line with corporate risk to give the best
benefit to SET. The Committee has emphasized SET’s technology risk management and assigned the Internal Audit
unit to review the new trading system’s pre-implementation process. Meetings with executives of the Information
Technology division were also held to ensure the efficiency and appropriateness of risk mitigation actions.
• Internal control: The Committee reviewed and assessed the adequacy and effectiveness of SET’s internal control
system by considering the internal audit report together with management responses, and the opinion of the external
auditor. The Committee also emphasized the monitoring process to ensure that management’s corrective actions were
implemented. Selected executives were invited to provide updates on the status and results of corrective actions as
well as to discuss matters of significant concern with the Committee.
• Internal audit: The Committee approved the internal audit plan considering the adequacy and appropriateness of
internal audit resources as well as the internal auditor’s independence. The Committee reviewed the operations of the
internal audit unit according to the approved annual plan and the evaluation showed that the objectives were achieved.
The Committee has also continually sought to provide recommendations on audit quality improvement. In 2012,
the Committee oversaw the audit quality improvement plans according to the recommendations of the external
qualified professional from the year 2011’s Quality Assurance Review and supported continuous audit by using audit
software to increase audit efficiency. In addition, the Committee continually oversaw the internal auditor professional
development plan including short-period rotation of the internal auditor to work in another business department to
understand the business there and oversea business trip to another exchange to share internal audit experiences.