EM-5 Hidden Expenses

Identify understated expenses and concealed losses.

Checks

• Review reserves (bad debt, warranty, loan loss, restructuring) for weakening coverage.
• Assess pension/OPEB and other assumption changes that reduce expense.
• Scan contingencies, commitments, VIE, and off-balance-sheet disclosures.
• Check for classification/presentation changes that obscure deterioration.

Output

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