| Financial reporting red flag |
|---|
| Aggressive revenue recognition |
| CFO/Net income < 1 or reducing |
| Abnormal sales growth/ inventory growth/ gross margin/ operating margin |
| Abnormal use of operating lease |
| LIFO liquidation |
| Aggressive pension assumptions |
| Extending use of long-lived assets |
| Year end surprise |
| Off balance sheet entities or financing arrangements |
