The Securities and Exchange Commission (SEC) has strengthened corporate governance standards for listed companies by enhancing internal audit requirements aimed at preventing fraud, conflicts of interest and irregular transactions.Anek Yooyuen, deputy secretary-general at the SEC, said the initiative follows several high-profile cases involving listed companies over the past few years that included suspicious transactions, governance failures, and misconduct that led to financial losses and damaged investor confidence.
While SEC and Stock Exchange of Thailand regulations already require companies to maintain effective internal control systems, the new framework places greater emphasis on the quality and qualifications of internal auditors, particularly heads of internal audit functions.
Under principles approved by the Capital Market Supervisory Board, chief internal audit executives are required to hold internationally or nationally recognised professional certifications and possess at least five years of relevant experience, including a minimum of three years in internal auditing.
Accepted qualifications include certified internal auditor, internal audit practitioner, and the certificate for professional internal auditors of Thailand, all of which are comparable to globally recognised professional standards, according to the SEC.
