In business, a due diligence audit is basically a thorough investigation into the entire financial picture of a company. Generally, these audits come before a purchase, merger or other major decision that could negatively affect the finances of one or more businesses. These audits are commonly used to assure that no hidden liabilities exist.
Due diligence can be related to an employee background check on a corporate scale. Like perspective employees, companies hoping to be purchased are often trying to make the most positive impression possible. The strengths of the company are often extremely stressed and the weakness is downplayed. A due diligence audit is an equivalent of checking references before hiring.
In general, a due diligence audit concentrates on information outside of what is freely presented. While it is generally demanded a purchasing company to perform these investigations, they are often done discreetly. The hire of private investigators is not uncommon, and seldom are the companies that are being investigated aware of the specific focuses of investigation.
Forensic accounting teams are usually the backbone of a due diligence audit. These professionals are trained to thoroughly review the financial records of an organization for any discrepancies. Unlike traditional accountants, forensic accountants are especially trained to search for fraud and hidden assets and debts.
Due Diligence Services
- Review of policies and procedures and documentation requirements as they pertain to specific regulatory and industry compliance needs.
- Assessment of regulatory compliance concerns.
What RVG & Associates Offers
Before beginning with any project we discuss with the Client the issues that are of main concern. In the end, the Client gets a due diligence report containing all findings. Our method is to save time, money and effort as well as to assist in influencing the price at the outset of the deal. We support clients in conducting financial, legal and accounting reviews in case of mergers, acquisitions, and investments. Our Due Diligence Solutions cover the following areas:
- Analysis and evaluation of financial and commercial information provided at an early stage of disposal or strategic divestment
- Gather, analyze and evaluate financial, commercial and tax information in detail
- Gathering and review of financial information to be provided to bidders
- Audit of specific purpose accounts
- Interfacing with the customer and their accounting advisors on accounting matters and challenging due diligence findings of the purchaser
- Identifying contract warranties.