The regulators like NFRA and Sebi may tighten vigil around the need for the "effective two-way communication process" soon, they said. At present, auditors in many cases are found to give a last-minute report/presentation to the audit committee of a company, consisting mainly of independent directors, just before the board is about to approve its financial statement, one of the persons said. "So, the auditor's report isn't scrutinised properly by the audit committee. Also, there is no effective two-way communication process, as required," he added.
