2005 - Asianbanks.net

Report of the Audit Committee
The Board of Directors appointed an Audit Committee, consisting of :
1. Mr. Somkiat Sukdheva Chairman
2. Assoc. Prof. Dr. Somjai Phagaphasvivat Member
3. Assoc. Prof. Dr. Suchart Thada-Thamrongvech Member
4. Mr. Pongsak Harnsongkitpong Secretary
During 2005, the Audit Committee convened 13 meetings to consider and review the following important issues:
1. Reviewed the Bank’s and its subsidiaries’ financial statements, their procedures for the preparation of statements and disclosure of important
information;
2. Met with the Bank’s external auditor to discuss audit procedures and problems encountered, and consider issues and observations submitted
by the external auditor for implementation by the Bank’s management;
3. Considered observations and recommendations contained in audit reports by the Bank of Thailand, and assigned to the Bank’s audit
departments the tasks of following up on the implementation of recommendations, as well as compliance with the rules and regulations
issued by the Bank of Thailand, and the Securities and Exchange Commission;
4. Reviewed management of risks, such as strategy risk, market risk, liquidity risk, credit risk and operational risk;
5. Considered related transactions, such as loans extended to businesses related to the Bank’s directors and/or executives, to prevent conflicts
of interests and to assure treatment in compliance with the Bank’s and government regulations;
6. Considered credit review reports;
7. Reviewed internal control and internal audit systems, as well as annual audit plans proposed by internal audit departments;
8. Considered observations contained in audit reports on the Bank’s departments and branches that covered operation management and
compliance with the Bank’s regulations, and recommended measures to rectify operational deficiencies and prevent their recurrence;
9. Invited individual first vice presidents of the departments concerned to clarify their operations that involved risks, and recommended
measures to improve their operations and prevent possible damages;
10. Reviewed accuracy and efficiency of the internal control of information technology systems;
11. Considered candidacy, recommended appointment and proposed compensation for the Bank’s external auditor;
12. Reported its minutes of the meetings to the Board of Directors.
Having considered and reviewed the aforementioned issues, the Audit Committee is of the opinion that the Bank’s financial statements do
not contain any unusual transactions that have material impact on the Bank’s operations; it has appropriate risk management and internal
control systems; its operations are in accordance with related laws and regulations and the treatment of related transactions have been in
compliance with the Bank’s and government regulations.
(Somkiat Sukdheva)
Chairman, Audit Committee
Annual Report 2005 7