Bangkok--7 Dec--SEC
The SEC will not accept application of Chanunkorn Satiraprapakul for approval as auditor in the capital market for one year, as from December 7, 2012. This follows the SEC’s finding that he had made audit mistakes and failed to comply with the auditing standards in performing the audit of financial statements of public limited companies applying for public offering of newly issued securities.
The SEC’s review on working paper indicated that Chanunkorn had made mistakes in auditing and reviewing financial statements of two public limited companies applying for public offering of newly issued securities during 2011. His actions were deemed as failure to comply with the auditing standards and the Notification of the Office of the Securities and Exchange Commission No. SorShor. 39/2553 Re: Approval of Auditors in the Capital Market dated September 23, 2010.
He had expresses unqualified opinions on the companies’ financial statements, despite the fact that the first company had revenue from providing services to related companies and the amount of profits with significant impact on the company’s financial statements. In addition, no record on evidence gathering or audit procedures to determine the validity of such service providing was found. In case of another company, his observation and random count of physical inventories found discrepancy between the outstanding balance and inventory register in most of the items while the company could not provide clear explanation about cause of such discrepancy. Chanunkorn, however, did not expand his audit scope, assess possible risks and sufficiently determine other audit procedures to consider the cause of such discrepancy and impact on accuracy of other accounts. Moreover, he did not determine any procedure to verify the accuracy of goods on consignment and record of cost of goods sold.
The SEC therefore determined a one year period where Chanunkorn’s application for approval as auditor in the capital market will not be accepted, starting from December 7, 2012. Earlier, he had submitted a letter to the SEC for termination of his status as the SEC approved auditor, effective March 30, 2012.