The engagement
We review financial records and related information to identify matters relevant to an investor or business owner. The scope is tailored to the transaction, information available and decisions the report is intended to support.
Scope of work
- Financial due diligence for investments and acquisitions
- Earnings, cash flow, debt and working capital analysis
- Review of financial records and identified compliance exposures
- Assessment of financial models and transaction assumptions
- Financial input into transaction terms and post-transaction actions
- Accounting cleanup and post-transaction finance integration where agreed
Engagement deliverables
The work may produce a diligence report, issues register, information-gap schedule and analysis of matters affecting transaction discussions. Findings distinguish verified information, management explanations and unresolved matters.
How the work begins
- Describe the requirement. Identify the entity, proposed transaction or matter and any deadline.
- Review acceptance and scope. We assess the facts, competence, independence and other relevant professional requirements.
- Agree written terms. Confirm responsibilities, records, deliverables and the intended use of the work.
Common question
Is financial due diligence the same as a statutory audit?
No. Due diligence addresses an agreed transaction purpose. Its scope and reporting basis differ from a statutory audit and should be understood before reliance is placed on the report.