Auditors must improve their work to meet International Financial Reporting Standards (IFRS) and ensure accuracy and transparency in financial reports, says the Federation of Accounting Professions (FAP).
The FAP will start to take serious action this year against auditors who fail to make note of irregularities in company reports.
"2016 is the first year auditors must strictly comply with international standards by making auditors note clearly in corporate financial reports when they notice irregular transactions or practices," said FAP vice-president Santi Vilassakdanont.
The FAP has the authority to ban or revoke the licence of any auditor who fails to follow IFRS practices and causes damage to investors.
"In some cases, they may risk facing criminal charges if there is evidence," Mr Santi said.
The FAP and other groups have trained and educated corporations over the past year to prepare accountants and auditors for the practices in annual reports this year.
"The new IFRS rules will protect investors as corporate financial statements will be audited thoroughly and any irregularities will be noted clearly," he said. "However, investors should protect their investments by thoroughly reading company financial statements as well as auditors' notes."
Pongpan Jiarawiriyapan, director-general of the Thai Business Development Department, said Thailand is one of 140 IFRS member countries this year, which should improve the country's accountability and transparency, a major factor in attracting foreign investment.
Thailand aims to be the trading hub of Asean so international accounting standards are crucial for trading activities of multinational companies.
"Investors expect to study financial analyses, financial statements and cash flow of companies before they make any investment decisions," Ms Pongpan said.
Financial reporting is even more crucial for equity investors as simple and transparent reports following a global standard are ideal.
She said the IFRS standards will be visible on the department's e-filing system.
Rapee Sucharitakul, secretary-general of the Securities and Exchange Commission, said becoming a member of IFRS is essential for Thailand as it improves the Thai capital market's accounting and financial reporting standards.
"IFRS improves Thailand's competitiveness in the global market as investors can trust that Thai listed companies are complying with global practices," Mr Rapee said.
The SEC is collaborating with the FAP, the IFRS Foundation and the Stock Exchange of Thailand to host the annual seminar "Thailand IFRS Conference 2016" in Bangkok today.