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I obtained an understanding of, assessed and tested on a sampling basis the effectiveness of
the internal controls relevant to the recognition of interest income, collection processes,

the internal controls over the relevant information technology systems, by inquiring of
management to gain an understanding of assessing the methods applied by management in

recognition of interest income, evaluated the appropriateness of basis applied in the
determination of the cash inflow estimates and the credit-adjusted effective interest rate. I tested,
on a sampling basis, the effectiveness of the calculation of the credit-adjusted effective interest
Bangkok Commercial Asset Management Public Co., Ltd.
rate, as well as reviewed whether the calculation of the cash inflow estimates and the expected
life of each debtor were consistent with the model. In addition, I tested the accuracy of the data
used in the model on a sampling basis, evaluated of the appropriateness of other factors that

affect the cashflow estimates, reviewed of the accounting records, and performed the cut-off
procedure to test whether interest income was recognised in a proper period. Moreover, I
performed analytical procedures on interest income and tested, on a sampling basis, significant

adjustments made through journal vouchers.

Expected credit loss of loans purchased of receivables

As discussed in Note 10.1 to the financial statements, the Company has loans purchased of
receivables and accrued interest receivables of Baht 94,094 million and allowance for expected
credit loss of Baht 21,710 million, net amount of Baht 72,384 million (accounting for 55 percent of

total assets). These amount are therefore considered substantially significant. The recording of an
allowance for expected credit loss requires the development of a model for complex
computations. Development of the model requires management to exercise a high degree of

judgement. Because of the materiality and the degree of judgement and estimates as mentioned
above, I addressed the adequacy of the allowance for expected credit loss for loans purchased of

receivables as a key audit matter.
I gained an understanding of the assumptions applied in the development of the model, taking

into account and evaluating the decision-making process of the model, and reviewed the
supporting documentation for model development. I tested, on a sampling basis, the accuracy of

the data used in the development of the model and assessed the calculation method and
assumptions, the reasonableness of the model, the recording of the allowance for credit loss
account, the recording of collateral value, and tested relevant internal controls over the collection

process and relevant information technology systems. In addition, I tested the adequacy of the
allowance for expected credit losses as at the year-end date by testing, on a sampling basis, the

accuracy of the data used in the calculation, the classification of receivables, the collateral value,
and the estimates of cash flows and expected lives, including tested the completeness of the data
used in the calculation and computation of the allowance for expected credit loss.

เอกสาร: เปิดเผย โดย: ธเนศ กิตติชีวเวช (Thanet Kitticheewawet)