Due diligence audit is an audit that is done before making an investment or getting into contract to check whether or not is the investment worth your time and money.  People hire professional auditors for this task as it could require special knowledge of the appraised industry and other expert knowledge.

 

This is normally carried out in the scenarios of merger, acquisition, and privatization or before getting into a contract or an agreement with another party.

The other party shall provide audited financial statements and copies of bank statements for the business checking, savings and investment accounts for the past three years. You’ll also want copies of vendor and supplier contracts, the accounts receivable, an accounts receivable aging spreadsheet and accounts written off as uncollectable. Get copies of all income tax records for the past seven years to be sure there are no outstanding taxes. This makes due diligence a complex process.

 

Our Due Diligence team is professional and has carried out many due diligence assignments in the region.