An examination of the emergence and development of the accountancy profession in developing countries: the case of the Kingdom of Thailand 1948-2010

This is an empirical investigation into the development of the accounting profession in Thailand between 1948 and 2010 during the period of economic transition. The accounting professional associations - the Institute of Certified Accountants and Auditors of Thailand (ICAAT) and the Federation of Accounting Professions (FAP) are utilized as case studies. The theoretical framework is drawn from the sociology of the profession and is concerned with the state-market-community nexus in the emergence and development of the accounting profession. Whilst the studies of Puxty et al. (1987), Seal et al. (1996), and Hao (1999) have placed strong emphasis on analysis of the regulation of financial statements and practitioners, this study focuses on the regulation aspect; in particular ICAAT, Auditor Act 1962, Accounting Act 2000 and the Accountancy Profession Act 2004 and FAP regarding the development of the accounting profession in Thailand.

The methodological approach of the study is based on the middle-range approach from Laughlin (1995) and conceptual framework from Llewellyn (2003) on qualitative accounting research. The study is as a historical case study employing the explanation research approach to present the development of the accounting profession. The study emphasizes, using secondary, archival and interview data, the influence of state, market, and community on the development of the accounting profession in Thailand.

The findings show: (1) the accounting profession was dominated by the State from 1948 to 2004; (2) the accounting profession gained a certain degree of self-regulation through the support of State laws and regulations from 2004 to 2010; (3) the State created the market for accountants and auditors; (4) there is no competition for market share by accountants as in the West; (5) the accounting profession is closely monitored by His majesty the King of Thailand; (6) there is no strong influence from British professional bodies on the development of the accounting profession in Thailand from 1948 to 2010; (7) there are missing links between the accounting profession and accounting education at university level in Thailand from 1948 to 2004; (8) the Big Four firms and their positive impact on the development of the accounting profession in Thailand. Policy makers and professional accountants in Thailand need to address these issues to improve the quality of the accounting profession. Further research should focus on the implications of the relationship between commercialization, globalization and the accounting profession in Thailand.