The Role of Audit Committee on Strategy of Company in Thailand

Abstract

The previous studies for the role of audit committee are mainly about the responsibility to oversee the integrity of the financial reporting, the controls and procedures implemented by management, to protect the interests of shareholders and other stakeholders which focus on the conformance roles.  There is no research study for the performance roles of audit committee which are related to the strategic formulation and policy making.  Therefore, this research is needed to investigate the performance roles of audit committees in Thailand.

                This study employed the cross sectional design which was the most predominant design in the social sciences.  Questionnaire surveys have mailed to 452 companies that listed in the SET covering 8 sectors.  The usable response rate is 12.83%.

                The findings indicate that there are six areas of the role of audit committee on strategy that have been evaluated with the grand mean of 3.32.  For the risk assessment of the strategy by audit committee, the findings also indicate that there are seven areas that have been evaluated with the grand mean of 3.25.

The Implication of this research will encourage management and audit committee to focus more on performance roles of audit committee related to strategic formulation in each areas mentioned in this research.  SET regulators will also understand the roles of audit committee specifically in the auditing process of strategy formulation or strategic planning which will partly drive to corporate success.  As a result, SET regulators may implement more rules and regulations to control performance roles of audit committee.  Shareholders or investors will benefit from using this research findings as a guidelines to invest in the companies which audit committee participates and audits the company strategy.  For the academic, the research findings can be used for further study in the future for the role of audit committee on strategy of company in Thailand.