The Audit Analytics Accounting Quality + Risk Matrix (AQRM) makes it easy to identify accounting, audit, and governance red flags for public companies. This blog series breaks down the risks associated with specific firm-level events included in the AQRM. Red … Continue reading
Category Archives: Red Flags
Risk of Pledged Securities for Public Companies
Pledged securities – shares of a public company that are pledged by their owner as collateral – present a potentially serious risk to a company’s governance and share price. When a major owner of a company pledges their shares, it exposes the company … Continue reading
Altman Z-Score as an Indicator of Financial Health
Evaluating a company’s financial health and performance always involves a degree of uncertainty, but there are measures that can be utilized to more objectively review financial strength. Metrics, such as the Altman Z-Score, have been developed in an attempt to … Continue reading