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Internal control system
Realizing the importance of efficient internal control at all
levels, the BoG has strongly supported management in setting up
transparent working processes, restructuring and segregating duties
with checks and balances, clearly specifying authority and put things
in writing. Monitoring systemhas also been set up. The BoG appoints
an Audit Committee to supervise and review SET’s internal control
system to ensure conformity with international standards. The Internal
Audit Department is an independent function that reports directly to
the Audit Committee on audit matters. Administrativematters have to
be reported directly to the SET president. Audit Committee members
consider the appointment, transfer or removal, and evaluate the Head
of the Internal Audit Department. Currently, Chanapai Supphasuk is
Head of the Internal Audit Department.
The Internal Audit Department is independent in the access
of necessary information for auditing. The Internal Audit
Department audits and evaluates the adequacy, suitability and
efficiency of the internal control system of various procedures and
systems according to SET’s annual audit plan, developed by using
a risk-based approach, to be approved by the Audit Committee. The
audit findings and follow-up results on the management’s operation
have been directly reported to the Audit Committee continuously.
SET operations are based on the internal control guidelines
and framework of The Committee of Sponsoring Organization of
Tradeway Commission (COSO) which contains five components
and 17 principles.
In 2015, SET carried out important activities and projects that
supported the enhancement of effective internal control system and
internal audit, which can be summarized as follows:
In 2015, SET gave priority to achieving international
standards by reviewing the implementation and development of
post-trade services to meet the standard of the Principles for
Financial Market Infrastructure (PFMI), assigning the Internal
Audit Department to review in compliance with PFMI standard.
SET has continued to enhance its computer system so
memberscanmaketransactionsmoreconvenientlyandefficiently,
having better control system, with continuous intensive
testing. The Internal Audit Department was assigned to conduct
a pre-implementation review of the new system before it was
put into use. On August 24, 2015, SET successfully operated
the new computerized trading and settlement system for
equity. SET always recognizes the importance of security of
Information Technology system. SET has been certified by
ISO 27001 since 2013.
The Internal Audit Department has continuously improved the
quality of internal audit through training for general audit skills
and specialized skills for computerized inspection system such
as theWeb Application Penetration Testing. The training took 84
man-days, including educational on-site visits and exchanging
internal audit experiences with the Internal Audit Department of
the Japan Exchange Group (JPX), Nomura Securities Co., Ltd.
(NSC) and Bank of Thailand, for the total of eight man-days.
SET is required to have a Quality Assessment Review (QAR)
conducted by external independent appraisers every five years.
The last assessment was done in 2011, with continuous
improvement taken into consideration the suggestions from
the assessment, as well as the self-evaluation implementation
The next Quality Assessment Review (QAR) conducted by
external independent appraisers is scheduled in 2016. Based
on internal audit activities and implementation of important
projects, the Audit Committee viewed that SET’s overall internal
control system has functioned adequately and appropriately.
(Details are shown in the Audit Committee Report section.)