THE ROLE OF OUTSOURCED INTERNAL AUDITORS IN THE BORDERLESS ERA

Abstract

          Thailand's economic conditions are constantly growing. The government has paid attention to this and has determined a policy to support business operators in order to achieve international standards connecting to the global economy. The economic development policies have been designated i.e. stability and sustainability affecting the expansion of business systems with continuously increased investments. Therefore, business operations in Thailand must be developed to be diverse in all dimensions of economic mobilization; an increase in capabilities, quality administration, and personnel competencies. This will lead to a procedure of sustainable development of the country and the organization. In addition, the Stock Exchange of Thailand pays attention to fostering sustainable and quality growth. It encourages listed companies to conduct business that take into account the environment, society and corporate governance. From the statistical issues overall, the number of listed companies on the Stock Exchange of Thailand (SET) increases every year. What is highly needed is a business that has a reliable internal control system, which is an important mechanism to meet the current business demands. Internal auditors are, therefore, considered a key mechanism that serves as a tool to build confidence in the business organization, to improve operational procedures to help the organization achieve its objectives, to assess and improve the effectiveness of risk management process, to control, and to supervise. In addition, the internal audit is necessary for the evaluation of the utilization of resources to attain optimal benefits. An efficient system to manage risks that may occur should be provided to be appropriate with the business which will lead the organization to success in its business operations. Presently, the trend of using the services of outsourced internal auditors is a popular service model globally and is expected to increase in the future.

Therefore, Thailand must expedite the establishment of a system and mechanisms to create standards for outsourced internal auditors to build confidence in various operations in the business sector of the country. In addition, these various systems will be materialized with the substantial cooperation with the following departments. (1) The Institute of Internal Auditors of Thailand (IIAT) must have a system for controlling and developing outsourced internal auditors. (2) The Stock Exchange of Thailand (SET) and the Securities and Exchange Commission (SEC) must pay attention to coordinating with IIAT to upgrade the quality of services of the outsourced internal auditors. (3) Outsourced internal auditors responsible for providing quality internal auditing services must have self-development and foster reliability in the quality of the efficient services provided. (4) Companies or business operators as well as investors using the services or information from outsourced internal auditors must have confidence in using the services from the internal audit.