Annual Report 2017

78 Annual Report 2017 Audit Committee Report The Stock Exchange of Thailand (SET)’s Audit Committee consists of three independent non-executive directors with expertise and experience in accounting, finance, management, and capital market as a whole. It is chaired by Jotika Savanananda, with Dr. Subhak Siwaraksa and Chaipatr Srivisarvacha as committee members. In 2017, the Committee held 15 meetings, including one with the executive management team and without the presence of the internal auditor. There were three meetings with SET’s external auditor to review and discuss the auditing plan and results. Two of these meetings were without the presence of the management team to ensure the auditor’s independence. The attendance record of the Audit Committee’s members is shown in the Corporate Governance Report. (page 49) The Committee has performed its duties and exercised with due responsibility under the scope of authority and responsibilities assigned by the Board of Governors (BoG), as shown on page 70. The Committee formally reported all matters within its duties and responsibilities to the BoG on a quarterly basis. A summary of key activities in 2017 is as follows: Financial statements The Committee reviewed SET’s quarterly financial statements by meeting with the management team and reviewed the 2017 annual financial statements of SET and of its subsidiaries by meetings with the external auditor to examine the accuracy and completeness of the financial statements, the disclosure of related transactions and the conflict of interest transactions. This also included internal control related to the preparation of the financial statements, in compliance with Generally Accepted Accounting Standards. Risk management The Committee has oversight the key risk management implementation of SET and its subsidiaries. Quarterly meetings with SET’s risk management team were held. In 2017, the Committee held two meetings 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. In addition, the members of the Audit Committee and the Risk Management Committee also visited Deutsche Borse Group in Germany to exchange views and experience as well as to enhance the corporate governance, risk management and internal audit practice. The Committee has placed importance on SET’s technology risk management by inviting an expert to present and share the knowledge and experience on “Agile Technology Innovation – a new challenge for internal audit and risk management” topic. Additionally, the Committee has assigned the internal auditor to conduct the pre-implementation review of new systems such as Fund Connext and Start-up platform before the launch. Internal control The Committee reviewed the adequacy, efficiency and effectiveness of SET’s internal control system. This was carried out by reviewing the internal audit report combinedwith the external auditor’s views. The Committee also followed up on internal control system enhancement, and provided recommendations concerning the disclosure process of related party transactions and items that may cause conflict of interest. In addition, the Committee also invited the management team of key business units to provide information and viewpoints on their implementations.