Core capability 03 of 12
Financial Forensics
Systematic detection of accounting anomalies, ratio irregularities and cash-flow inconsistencies — each flag opened up to the evidence that raised it.
Accounting anomaly and ratio irregularity screens
Cash-flow versus earnings reconciliation
Related-party transaction mapping
Full evidence trail behind every red flag
Intelligence interface
Forensic review
Financial Forensics · Example Holdings Ltd.
--:--:-- UTC
Flags raised
7
2 high
Accrual ratio
8.9%
vs. 3.1% peers
DSO
78 days
+14 days
Related-party value
$41.2M
3.2% of revenue
Restatements
1
FY23
Accruals vs. cash earnings
FY21–FY25 gap, $M
12
21
36
58
84
FY21
FY22
FY23
FY24
FY25
Flags raised
| Flag | Severity | Basis |
|---|---|---|
| Receivables outpacing revenue | High | Balance sheet, 3 yrs |
| Unbilled revenue build-up | High | Segment note |
| Capitalised cost step-up | Medium | Cash flow statement |
| Related-party lease renewal | Medium | RPT disclosure |
| Inventory days drift | Low | Working capital note |
| Auditor emphasis of matter | Medium | Audit report FY24 |
AI analysis
Two flags reinforce each other: receivables and unbilled revenue together absorb most of the reported growth, and the segment where they concentrate is also the one carrying the related-party lease. Treat reported FY25 growth as unconverted until working capital normalises.
Evidence trail
[1]
Annual Report
FY25 · p. 84, segment note
[2]
Earnings Filing
Q4 FY25 · statement of cash flows
[3]
Company Presentation
Investor day · slide 22
[4]
Regulatory Filing
Related-party disclosure
How teams use Financial Forensics
Pre-mortem
Run the screen before committing diligence hours to a target.
Monitoring
Re-run each reporting cycle and see which flags moved.
Investigation
Follow a flag from headline to the disclosure line behind it.