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Annual Report 2014
112
The Stock Exchange of Thailand (SET)’s Audit
Committee consists of three independent non-
executive directors with expertise and experience in the
capital market, accounting, finance and management.
It is chaired by Jotika Savanananda, with Dr. Subhak
Siwaraksa and Charnchai Kongthongluck as members.
During 2014, the Board of Governors (BoG)
appointed Charnchai Kongthongluck to the Committee,
effective June 18, 2014, to succeed Chaipatr Srivisarvacha
whose term expired. The BoG also appointed Jotika
Savanananda as chairperson and Dr. Subhak Siwaraksa
as a committee member, effective August 20, 2014,
to succeed Kaisri Nuengsigkapian and Yothin
Nerngchamnong respectively, whose terms expired.
In 2014, the Committee held 13 meetings, including
one with the executive management team and without
the presence of the internal auditors. There were three
meetings with SET’s external auditors to review and
discuss the auditing plan and results. 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 94.
The Committee has performed its duties and
exercised due authority under the scope of authority and
responsibilities assigned by the BoG, as shown on
page 101. The Committee formally reported all matters
within its duties and responsibilities to the BoG on a
quarterly basis. A summary of key activities in 2014
is as follows:
Audit Committee Report
• Financial statements:
The Committee reviewed
SET’s quarterly financial statements by meeting
with the management team and reviewed the 2014
annual financial statements by meeting privately
with the external auditor to examine the accuracy
and completeness of SET’s financial statements
and the disclosure of related transactions. This
included internal control related to the preparation
of the financial statements, in compliance with
generally accepted accounting standards.
• Risk management:
The Committee reviewed enterprise
risk management (ERM) policies and processes.
Quarterly meetings were held with SET’s ERM team
and an annual meeting with the Risk Management
Committee to ensure that internal audit and risk
management operations were moving in the same
direction for utmost benefit to the organization. The
Committee had emphasized SET’s technology risk
management by assigning the internal audit unit to
review the pre-implementation process for the new
derivative trading and clearing systems. On May 6,
2014, SET successfully launched its new systems,
operating smoothly and efficiently.
• Internal control:
The Committee reviewed the
assessment results of the adequacy and effectiveness
of SET’s internal control system. This was carried
out by reviewing the internal audit report combined
with the external auditors’ views. The Committee
also followed up on internal control enhancement
by inviting the management team to explain the
problem-solving process and solutions, as well
as providing information and views on key issues.