SEBI Chairperson Asks Auditors To Use Third Party Validation
According to Madhabi Puri Buch there exist more than 20 websites in the country which can be used by the auditors to validate the claim of the auditee. Tools such as GSTN portal, bank websites etc. can be used by the auditors for doing a third-party validation
The chairperson of Securities and Exchange Board of India (Sebi), Madhabi Puri Buch asked the auditors to use technology-driven third-party validation for the auditing process in order to check fraud, on 24 November.
While addressing an event organised by the Indian Audit and Accounts Department, Buch said that the commitment to ensure a true and fair picture of whatever is presented in the markets drives the SEBI’s thrust on third-party validation.
According to her there exist more than 20 websites in the country which can be used by the auditors to validate the claim of the auditee.
She said that, when the fraudsters can use technology as a tool, we can use the same technology to evade fraud. Tools such as GSTN portal, bank websites etc. can be used by the auditors for doing a third-party validation.
Auditors are considered as free consultants by the Buch. For disclosure of any document, one needs to check factors such as errors, omission, distortion of the context, denial, minimising, exaggeration, fabrication, Buch added.