Auditors seem to be getting more vocal about financial gaps at listed companies, possibly due to an enhanced regulatory glare, as independent audit reports for a number of publicly traded companies have begun flagging issues like net-worth erosion and lack of necessary disclosures. In some cases, the auditors have even begun quitting the audit mandate, while in many others they have expressed their reservations about whether their clients can continue operating on "going concern" basis with net-worth turning negative, losses mounting and diminishing prospects of required revenue and cash flow generation. The companies that have seen auditors flagging various issues include Jet Airways, L&T's shipbuilding arm, Manpasand Beverages, Vakrangee Ltd and Atlanta Ltd. Experts believe this trend may get even more prominent going forward with several sectors facing financial difficulties at a broader level and also due to corporate governance related issues at individual levels.
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