This means that companies are sometimes required to restatement preceding reports on financial performance results. Companies under serious debt or acute liquidity problems may use financial manipulation to hide the problems. Such high leverage is such a huge pressure to meet obligations at maturity dates, and if the cash flows can't provide the cash to meet this obligation, the company may opt for financial position hiding either through earnings inflation or underreporting of liabilities. Red flags in financial reporting will then distinguish manipulations, errors, or even frauds. As the article further points out, we examine those common warning signs of something amiss about the firm's financial reporting.