Use third party validation to check fraud: Sebi chairperson Madhabi Puri Buch to auditors

Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch on Thursday nudged auditors to use technology-driven third-party validation in the auditing process in order to check fraud.

"Sebi's thrust on third-party validation is driven by the commitment to ensure a true and fair picture of whatever is presented in the markets," Buch said while addressing auditors at an event organised by the Indian Audit and Accounts Department.

Buch said there are more than 20 websites in the country which auditors can use to validate the claim of the auditee.

"While technology is being used as a tool by fraudsters, we can use the same technology to evade fraud. Auditors can use tools like GSTN portal, bank websites etc. for doing a third-party validation," she said.

Buch said she considered auditors as free consultants. "In any disclosure document, one has to check factors like errors, omission, distortion of the context, denial, minimising, exaggeration, fabrication," she said.