Thailand Statutory Audit (CPA / TFAC)

Every Thai company must be audited, without exception for size

Under the Accounting Act B.E. 2543 (2000) and the regulations of the Department of Business Development, financial statements of a Thai registered company must be audited by a Certified Public Accountant licensed in Thailand and then filed. Unlike many jurisdictions, there is no small-company audit exemption for limited companies: a dormant entity with no transactions still needs an audit report and still files.

The statements must be prepared under Thai Financial Reporting Standards. Most private companies apply the standard for non-publicly accountable entities, which is materially lighter than full TFRS, while entities with public accountability apply full TFRS. Choosing the wrong framework is not a presentation issue; it changes recognition and measurement, and an auditor cannot sign a clean opinion over statements prepared on the wrong basis.

The filing chain has two destinations. The audited statements, approved by shareholders at the annual general meeting, are submitted to the Department of Business Development, and the corporate income tax return is filed with the Revenue Department with the audited figures. Because the AGM must be held within the period the Civil and Commercial Code prescribes after the year end, the audit timetable is driven backwards from that meeting, not from the tax deadline.

The annual compliance cycle

How we run an engagement

1. Planning and framework confirmation: We confirm the reporting framework, identify related-party relationships and foreign-currency exposures, and agree a timetable that works backwards from the AGM date.
2. Pre-audit readiness review: We test whether the books are actually closable before fieldwork begins. Starting an audit on an unreconciled ledger converts a two-week engagement into a two-month one.
3. Fieldwork: Substantive testing, bank and receivable confirmations, inventory observation where material, and review of the tax positions that most commonly generate assessments.
4. Adjustments and management letter: Proposed adjustments discussed with management, plus a management letter identifying control weaknesses in plain language rather than boilerplate.
5. Reporting and filing: Statements finalised, opinion signed by the licensed CPA, AGM documentation prepared, then DBD and Revenue Department submissions with receipts retained.
6. Forward planning: We use the findings to fix the following year's bookkeeping process, so the same adjustments do not reappear twelve months later.

Audit findings that turn into tax assessments

Certain recurring items attract Revenue Department attention when they appear in audited statements: expenses without proper supporting tax invoices, related-party charges that are not supported by an agreement or a pricing rationale, directors' expenses that are personal in character, and shareholder loans that have no documented terms or interest. Each of these is a normal commercial arrangement that becomes a problem only because it was not documented at the time.

Transfer pricing is now a standing item for companies above the revenue threshold in the Revenue Code provisions, which require a disclosure form and, where requested, documentation supporting the arm's length nature of related-party transactions. A Thai subsidiary charged a management fee by its parent should hold contemporaneous documentation, because reconstructing a defensible position after an assessment notice is significantly harder and more expensive.

Common mistakes and how we avoid them

More questions we are asked

Does a company with no transactions need an audit?

Yes. Thai law requires audited financial statements for a registered limited company regardless of activity level, and the statements must still be filed.

Which accounting standards apply?

Thai Financial Reporting Standards. Most private companies apply the framework for non-publicly accountable entities; entities with public accountability apply full TFRS.

Can our overseas auditor sign the Thai statements?

No. The audit opinion for a Thai filing must be signed by a CPA licensed in Thailand, whose licence number appears on the filed statements.

When are the statements due?

The AGM must be held within the statutory period after the financial year end, with DBD submission and the corporate income tax return following on their own statutory deadlines.

Can you also handle the bookkeeping?

We can provide bookkeeping or work alongside your existing accountant, with the audit function kept appropriately separate to preserve independence.