Investors and lenders beware: What’s undisclosed on a company’s financial statements can be just as significant as the disclosures. Examples of unrecorded liabilities include warranties, pending lawsuits, IRS investigations and an underfunded pension. It’s also important to consider hidden items buried in the assets, such as bad debts or damaged goods in inventory. We can perform an external audit or agreed upon procedures that target specific areas to provide a clearer picture of a company’s financial well-being.