EM-4 Expense Deferral

Check for delayed expense recognition.

Checks

• Track capitalization trends for software, marketing, and other operating-like costs.
• Review amortization/depreciation assumptions and useful-life extensions.
• Evaluate impairment timing vs business deterioration indicators.
• Compare expense ratios against peer and historical baselines.

Output

Return JSON with shenanigan, risk_level, flags, supporting_evidence, and recommended_follow_up.