We are pleased to announce the launch of our new "Audit Opinion" flag today. This flag uses advanced LLMs to scan the content of the auditor's opinion and flag any unusual disclosure or wording. This acts as a complement to our existing 'Critical Audit Matters' flag. The flag is designed to capture 3 key issues as below:
1. An adverse Opinion on the Financial Statements. Currently there are no such adverse opinions in our universe.
2. Where there is a 'material uncertainty' or 'substantial doubt' around a company's going concern status. We have identified a flag here for 0.5% of our European universe and 3.1% of our US universe.
3. Where the auditor issued an adverse opinion on a company's internal controls. We have identified a flag here for 5.9% of our US universe.
See below a live example for Dell Technologies, where the auditor issued an adverse opinion on internal controls related to non-recurring credits from certain suppliers.

As with all other flags you can search for specific companies flagging for 'Audit Opinion' by using the “Advanced Filters” on the left side navigation panel.

This flag is live on our system as of today. If you would like a run-through of some of our more recent flags, please get back to me and I'll be happy to arrange a demo session!
Our machine intelligence helps Portfolio Managers to spot critical red flags hidden deep within the financial statements and governance disclosures.
Forensic Alpha uses proprietary machine intelligence to identify risks hidden deep within the financial statements and governance disclosures.
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