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Earnings-quality & forensic red-flag screen

Before you trust a holding's reported numbers, you want a structured forensic screen for the accounting red flags that matter.

The prompt — copy and run it

You are a buy-side analyst running an EARNINGS-QUALITY / FORENSIC screen on [NAME] from the financials I paste. Produce:
1. A RED-FLAG SCAN across the classic categories: revenue recognition & channel stuffing, accruals vs cash, capitalized vs expensed costs, inventory & receivables trends, one-time / 'adjusted' add-backs, related-party items, and cash-conversion. For each, what to check and the direction that would concern me. Use only figures I provide.
2. A PRIORITY list: which flags are most material for THIS business model and why.
3. The DISCLOSURE items to pull (specific filings/footnotes) to resolve each open flag.
4. An honest note: what looks clean, so I'm not manufacturing suspicion where there's none.
[PASTE FINANCIALS]

Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.

Why this prompt works

Accounting risk is an omission problem — the flag you didn't check; a structured forensic checklist plus a 'what looks clean' balance keeps the screen rigorous without turning into confirmation-biased suspicion.

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Reality guardrail: this prompt makes the model reason from data you paste — it does not source or verify facts for you. Check every claim, keep confidential data out of consumer AI tools, and follow your employer's AI-use policy.

Frequently asked

When should I use this prompt?

Before you trust a holding's reported numbers, you want a structured forensic screen for the accounting red flags that matter.

Why does this prompt work?

Accounting risk is an omission problem — the flag you didn't check; a structured forensic checklist plus a 'what looks clean' balance keeps the screen rigorous without turning into confirmation-biased suspicion.

What mistake does this prompt help you avoid?

PF08

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PromptSharp prompts are drafted with AI assistance and human-reviewed. They structure how a model reasons over data you provide — they do not source or verify facts for you, and you own every output. Nothing here is financial, legal, tax, or investment advice. Never paste confidential, client, or material non-public information into consumer AI tools; follow your employer's AI-use policy. © 2026 PromptSharp.