Audited annual reports may face scrutiny

The ministry of corporate affairs is working on a proposal according to which audited annual accounts of companies would be scrutinised on a regular basis. Currently, the government directs special audits only in cases where irregularities come to light. The development follows a proposal from a high-level committee on financial sector reforms. The Planning Commission constituted panel, chaired by former IMF chief economist Raghuram Rajan, had proposed that a review of such annual accounts would result in greater public confidence in company reports.