Critics could readily point to several red flags or fraud risk factors during Deloitte’s tenure with Livent that should have placed the accounting firm on hugh alert regarding the possible existence of financial statement misrepresentations. Among those factors were an extremely aggressive, growth-oriented management team; a history of prior financial reporting indiscretions by Drabinsky and Gottlieb; a constant and growing need for additional capital; and the existence of related-party transactions. Regarding the latter factor, several of Livent’s fraudulent “revenue-generating transactions” that were documented by the SEC involed companies or corporate executives affiliated with Livent or its management team.