Terms of Access and Use

By downloading, accessing, or viewing material from this website, you agree to the following Terms of Use. The research and analysis provided by Forensic Alpha Limited (“we”, “us”) is for informational and educational purposes only and does not constitute investment advice, a recommendation to buy, sell, or hold any security, or any other form of regulated advice. We do not have, and do not seek to establish, any position (long or short) in the securities discussed in our research.

Our reports present our independent opinions on publicly available information, including but not limited to, company disclosures and financial statements. We aim to highlight potential risks, governance issues, or accounting practices that we believe merit further consideration by market participants. You agree to conduct your own research and due diligence, and to consult your own financial, legal, tax, and other professional advisers before making any investment or business decision. Use of our research is entirely at your own risk. In no event shall Forensic Alpha Limited or any affiliated party be liable for any direct, indirect, incidental, or consequential losses arising from your use of our materials.

The information we provide is based on sources we believe to be accurate and reliable at the time of publication, but it is provided “as is” without any representation or warranty of any kind, whether express or implied, including without limitation as to accuracy, completeness, or fitness for any particular purpose. All opinions expressed are subject to change without notice, and we do not undertake to update or supplement our research.

Access to our research is intended only for persons who are professional investors, institutional investors, or otherwise qualified to receive such information under applicable laws in their jurisdiction. In the United Kingdom, this includes (but is not limited to) persons falling within one or more of the categories described in Articles 19 (Investment Professionals) and 49 (High Net Worth Companies, Unincorporated Associations etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. By proceeding to access our materials, you confirm that you meet the relevant criteria in your jurisdiction and are legally permitted to receive such information.

All content on this site is the intellectual property of Forensic Alpha Limited and is protected by applicable copyright laws. You agree not to reproduce, distribute, or transmit our research, in whole or in part, without our prior written consent, except by sharing a direct link to our website.

By clicking “I Agree” below, you confirm that you have read and agree to Forensic Alpha Limited’s Terms of Access and Use, that you are a professional or institutional investor (or otherwise qualified under the laws of your jurisdiction to receive such information), and that you understand our research does not constitute investment advice or a recommendation to buy, sell, or hold any security.

I Agree

Launching 2 New Flags: "Risk Factors" and "Critical Audit Matters"

May 20, 2026

Launching 2 New Flags: "Risk Factors" and "Critical Audit Matters"

We are excited to announce the launch of two new modules today: “Risk Factors” and “Critical Audit Matters”. These modules use advanced LLMs to screen through annual reports and 10-Ks to identify important changes in wording that are potentially market-moving. We have been working over the last 3 months to refine these flags to ensure they can zero in on relevant risks and look through the noise. This brings the total number of flags on our panel to 35.

Risk Factors

Our “Risk Factors” module compares disclosure from one year to the next, highlighting important new risk factors and significant changes in wording. Some examples of what our system picked up:

Crowdstrike (see extract below) : A new risk factor referring to financing arrangements for certain customers and the credit risks associated with these arrangements if customers are negatively affected by economic uncertainties.

Cummins Inc: Increased earnings dependence on China-based investees, with more than 40% of equity, royalty and interest income coming from just three joint ventures in China.

EssilorLuxotica: A new risk factor on ‘Pricing’ highlights the group’s exposure to challenges in sustaining appropriate product pricing.

Critical Audit Matters

The "Critical Audit Matters" flag uncovers changes in the auditor’s report that indicate significant new challenges or areas of judgement, potentially leading to misstatement. Some examples of what our system picked up:

Rivian (see extract below) : A new critical audit matter raised in relation to the warranty reserve. The auditors state that evaluating the expected frequency of future claims ‘required especially subjective auditor judgement’.

Altria: A new critical audit matter raised in relation to the goodwill impairment assessment for the E-Vapor reporting unit. The auditor cites significant judgement by management when developing the fair value estimate of the reporting unit.

‍delity National Information Services: Auditor judgement required in determining the sufficiency of audit evidence related to the deconsolidation of Worldpay, which remains an equity-accounted entity.

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

‍

Terms of Access and Use

Launching 2 New Flags: "Risk Factors" and "Critical Audit Matters"

Launching 2 New Flags: "Risk Factors" and "Critical Audit Matters"

Risk Factors

Critical Audit Matters

Institutional investors are eligible for a 7-day free trial.