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Audit Committee Report
81
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.
In 2015, the Committee held 14 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. One of these meetings with the external auditors was
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 51
The Committee has performed its duties and exercised
due authority under the scope of authority and responsibilities
assigned by the Board of Governors (BoG), as shown on page 74
The Committee formally reported all matters within its duties
and responsibilities to the BoG on a quarterly basis.
A summary of key activities in 2015 is as follows:
Financial statements
The Committee reviewed SET’s quarterly financial
statements by meeting with the management team and reviewed
the 2015 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 with SET’s
ERM team were held. The Committee also held two meetings
in 2015 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 clearing and depository systems for equity
market. On August 24, 2015 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.
Internal audit
The Committee reviewed and approved the internal audit
plan considering the adequacy and suitability of the resources,
as well as the internal auditor’s independence. The Committee
reviewed and examined SET’s internal audit operations and
concluded that the operations met the set objectives.
The Committee has continuously encouraged the internal
auditor’s professional enhancement activities. In 2015, the
Committee supported the business trips to other exchanges to
share and gain experience in internal audit, risk management
and corporate governance.
Corporate governance (CG)
The Committee held quarterly meetings with the compliance
unit’s management team to review SET’s CG process to make
sure it complied with SET CG policy and Code of Ethics. The
Committee also supported other good CG practices, such as
by enabling employees and other stakeholders to direct their
complaints to the Committee’s Chairperson. SET has opened
up a special channel via SET’s website under “Whistleblowing