ACF - when you report a post each mod gets notified via email. Our own email accounts unfortunately, not one associated to this site. The email contains the comments the member put on the report, and a link to the post in question. If you are asking, why don't I hear back from the mods - well that is another thing. If another mod has not already dealt with the post, I tend to take one of three approaches. Do nothing, leave the post as is and reply to the reporting member with rationale, or make an alteration/addition to the post or thread. I suppose a fourth option is to take it up with other mods, which I do from time to time to obtain a wider perspective. I would prefer to reply to the reporting members more often to explain my (in)action as everyone seems to appreciate the replies, but it's a pain to search for the member and write the PM when you look at several of these things in succession. And I'm not replying directly from my email and exposing it to the BPCs of the world.
I will be brutally honest here, there are times when I read a report and think "Oh for goodness sakes" and ignore it. There are other times when I think the person who took the time to report it did the forum a true service. In a perfect world, everyone would get a reply.
As for the moderating process, I'm not sure what you are asking. It is based upon common sense, seat-of-the-pants judgement, direction from the CN team, and consensus among the mod team. So another mod may handle a reported post differently or be more diligent than I in terms of replying.