Discussion Questions - Red Flags Many different tools are used to assess the financial statements of a corporation. Discuss the purpose of each tool/process below along with the insight that you would expect to gain from each:

• Vertical and horizontal analysis of the income statement and balance sheet

• Cash flow analysis

• Deep-dive review of account balances

• Ratio analysis

Also include a discussion of the following technical tools:

• Structured Query Language (SQL)

• Open Database Connectivity (ODBC)

• Digital Analysis

• Outlier Investigation

• Stratification

• Summarization Consider how each of these financial tools can provide insight into the company and help management to develop a list of “red flags.”