Annual audit in Thailand
In Thailand, the tax year follows a 12-month period ending on December 31. Audited financial statements must be submitted within 150 days of this date. However, a company has the option to select its own accounting period, which must not exceed 12 months. If a company chooses a different accounting period, the audit must be submitted within 150 days from the end of that period.
Steps for Completing the Annual Audit in Thailand
- Document Collection
- Conducting the Audit
- Reviewing and Signing the Audit Report
- Paying Taxes
- Meeting with Shareholders
- Filing the Audit Report
1.1 Financial Statements
Balance Sheet: A snapshot of the company’s assets, liabilities,
and equity at the end of the financial year.
Income Statement: A report detailing the company's revenues,
expenses, and profits (or losses) for the period.
1.2 Bank Statements
Companies must provide bank statements for all business accounts covering the entire audit period. These statements allow the auditor to verify the accuracy of the company's cash balances and ensure that transactions are properly recorded.
1.3 Accounting Records
This includes general ledgers, trial balances, journals, and any other books or records that support the financial statements. These records are essential for tracing the company's transactions and validating the information presented in the financial statements.
1.4 Invoices and Receipts
A company must present all invoices for income and expenses during the audit period. These serve as proof of transactions and help the auditor verify the accuracy of recorded revenues and expenditures. Receipts for payments (such as utility bills, office supplies, and other business expenses) also need to be provided.
1.5 Tax Filings and Payment Records
Documents such as VAT returns, corporate income tax returns, and proof of tax payments are crucial for confirming the company’s tax compliance. The auditor will use these to ensure the company has correctly reported its tax liabilities and made the necessary payments to the Revenue Department.
1.6 Title Deeds and Contracts
Title deeds for property owned by the company, as well as any contracts related to leases, loans, or other significant business arrangements, should be provided. These documents help verify the company’s assets and liabilities.
1.7 Payroll Records
Companies must provide documentation related to employee salaries, bonuses, benefits, and any other payroll-related expenses. This includes salary slips, contracts, and tax withholdings. Payroll records are important for ensuring compliance with labor laws and tax regulations.
1.8 Inventory Records (if applicable)
For businesses that hold inventory, detailed inventory records are necessary. These may include stocktaking reports, inventory valuation reports, and supporting documentation showing how inventory was purchased, sold, or written off during the audit period.
1.9 Loans and Financing Documents
Any documentation related to loans, lines of credit, or other financing arrangements, including interest payments, principal repayments, and outstanding balances, should be made available. This information helps the auditor assess the company’s financial obligations.
1.10 Fixed Asset Register
If the company owns fixed assets, such as machinery, buildings, or vehicles, a detailed fixed asset register must be provided. This document lists all assets, their acquisition costs, depreciation schedules, and their current book value.
Legal Documents
Any legal documents or correspondence that might affect the company's financial position, such as pending lawsuits, settlements, or claims, should be disclosed. This information is vital for assessing potential liabilities.
Shareholder and Board Meeting Minutes
The minutes from shareholder and board meetings may be required to verify decisions made regarding dividends, financial statements, or any other material company actions. This also includes approvals for the appointment of auditors.
A certified auditor will analyze and verify the company's financial accounts, ensuring accuracy and compliance with accounting standards.
Once the audit is complete, the company director will review the findings and sign the audit report to acknowledge the results.
If the audit reveals that taxes are owed, the company must settle any outstanding amounts with the Revenue Department.
The company must organize and invite shareholders to an Annual General Meeting (AGM). During the AGM, the directors will present the financial statements, including the auditor's report, to the shareholders. Shareholders have the opportunity to review the report, ask questions, and vote on the reappointment of the auditor for the following year.
The company must file the audit report and all supporting documents with both the Commercial Registration Department and the Revenue Department of the Ministry of Finance (MOF).
Important Notes