The auditor draws up a report in which he explains and justifies his opinion. This opinion is the conclusion of all the work carried out during the mission. It is communicated to all partners/shareholders during the annual general meeting via the report. This report has a precise form and substance: title, paragraphs, date, the signature of the story. The opinion was given by the auditor maybe, as the case may be:
|➤ Unqualified certification|
|➤ Certification with reservation (s): disagreement or limitation|
|➤ Refusal to certify: disagreement|
This form is a form of corporate income tax. Here in the Kingdom, it is filed annually. It is quite a long process. It merely goes ahead and delineates the corporate income activity or lack of income activity within a given organization, and this has to be dealt with annually.
It is filed with the Department of Revenue (RD) and Business Development (DBD). The RD and DBD include a year-end audit of the company’s finances and the preparation of the company’s financial statements. So long as the corporation is an established limited company, public company, legal entity, and registered partnership, whether engaged in business or not (trading or not trading), the Annual Audit should be submitted and compulsory.
A Company Balance Sheet is a financial statement that lists the assets, liabilities, and equity of a business during the fiscal year. A balance sheet documents the disposition of money in a store. It indicates the accounting value of all the assets, liabilities, and equity of the organization, which can lead to assumptions about the entity’s liquidity.
It is called a balance sheet because it balances the two sides. A company has to pay for all the things it has (assets) either by borrowing money (liabilities) or by getting it from shareholders (equity of the shareholders). Such three parts of the balance sheet give investors an idea of what the company owns and owes and the amount the shareholders spend.
A balance sheet must be drawn up at least once every 12 months in which the twelve-month span is the accounting or financial year of the company. A newly formed corporation will close accounts within 12 months of incorporation. It must be approved by a professional external auditor and must be filed annually with the Department of Revenue and Business Development.
The balance sheet must be checked by one or more auditors and sent to a general meeting for approval within four months of its date. A copy of it must be sent to each person enrolled in the shareholders’ list at least three days before the general meeting. Copies must also be kept available at the company’s offices for the same time for shareholders’ inspection.
The corporation’s annual financial statement must be filed with the Revenue Department and Business Operations Department, along with its annual income tax report, within 150 days of the close of its accounting period. Otherwise, the corporation may be liable for a specific penalty or fine that may also extend to the responsible officer.
A Financial Statement is a company formal record of a business, person, or other entity’s financial activities. It presents significant operating results and an enterprise’s financial position.
Companies with accounting periods ending 31 December 2020 must file audited financial statements no later than 31 May of each year with the Department of Business Development (DBD), Ministry of Commerce.
A limited company shall hold an Annual General Meeting (AGM) within four months of the end of the fiscal year to consider and approve the audited financial statements, as required by law (such as the rotation of directors) and as provided for in the company’s Articles of Association (AOA).
To hold the AGM, the company must give written notice of the AGM’s calling, through its Board of Directors, at least seven days before the shareholder meeting date (unless otherwise stipulated in the AOA of the company). The notice must be published in a local newspaper and sent by registered mail or hand-delivered to any shareholder whose name appears in the shareholder’s list.
Also, the overall maximum penalty levied for not holding an AGM to approve the audited financial statements within four months of the end of the fiscal year is as follows: THB 20,000 on the company; and THB 50,000 on the directors.
After the AGM is held, a limited company has only one month from the meeting date to send its authorized financial statements through the DBD’s e-filing system to the Department of Business Development (DBD), the Ministry of Commerce.