Paper Title
The Effect Of Those Charged With Governance And The Adoption Of Thai Standards On Auditing (B.E. 2555) On Audit Quality

Abstract
Using a unique setting that arises from the enforcement of the revised Thai Standards on Auditing (“the revised TSAs”) in 2012, this study examines the effect of Those Charged with Governance (“TCWG”) on audit quality. The revised TSAs emphasizes on roles of TCWG by promoting effective two-way communication and constructive relationship between auditors and TCWG and by adding a single paragraph about the management responsibility on the auditor's report. From existing audit quality literatures, roles of TCWG, as demand-side factors of audit quality, have rarely been explored as compared to auditors’ traits, as supply-side factors. I investigate four effective characteristics of TCWG which are low manipulation risk of management, non-family ownership of management, independence of audit committee, and accounting expertise of audit committee. I find that, after the revised TSAs adoption, audit quality improves greater for firms monitored by the high potential manipulators, family managers, and dependent audit committees. The improvement of audit quality is more pronounced for the firms monitored by the less-effective groups of TCWG, indicating the success of the revised TSAs implementation in Thailand. This paper offers an understanding of the consequences of the revised TSAs adoption and the importance of TCWG effectiveness on audit quality. Moreover, the results identify issues that may assist regulators and standard setters for Index Terms- those charged with governance, auditing standards, audit quality