Due diligence
Due diligence is an investigation into relevant financial, operational, legal or other matters to assist a party considering a transaction or decision. Scope depends on the client’s objectives and agreed procedures; it is not automatically a statutory audit or assurance opinion.
Worked example
A prospective buyer commissions a review of a target’s earnings, working capital and significant contractual liabilities.
Common mistake
Do not promise that due diligence discovers every liability or automatically provides audit-level assurance.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |