Whenever you're ready, walk me through how you'd approach this.
What are the most common accounting red flags that suggest a deterioration in credit quality?
Discuss the red flags you would look for across the income statement, balance sheet, cash flow statement, footnotes, and debt disclosures. Explain how you would distinguish an accounting presentation issue from a genuine weakening in debt-service capacity, and identify the follow-up procedures or credit actions you would recommend.