What are the flaws in financial statement analysis

Inability to fulfill the need for background information about a business. Complete background information can help financial reporting stakeholders to determine the business strategy and future prospects of the enterprise and the business environment of the enterprise to adapt or not. The deficiencies of the current financial report in this regard are mainly the lack of a brief description of the enterprise's industry, the enterprise's technological level and technological progress, the enterprise's share of foreign operations, the enterprise's profitability in the past, the scope of the enterprise's operations and assets, the enterprise's main competitors, the enterprise's near-term goals and objectives, and other corporate background information.

A material weakness is a significant control deficiency or a combination of significant control deficiencies that makes it more likely than not that a material misstatement of an annual or interim financial report will not be prevented or detected.