What is a Due Diligence Audit?
Due diligence refers to the research that is performed before entering into a contract or an agreement with a third party. Due diligence is the investigation that is performed to identify all the facts before making an investment or pioneering a product. This investigation may also require the audit or the scrutiny of the financial records.
Every time an investor decides to make an investment, he clearly analyses and understands the risks that investment is going to face and the returns the potential investment is going to yield. Based on the risk-return ratios, the investor decides whether to propagate on the investment decision or to back out. As the decision of the potential investment depends on various factors, it becomes crucial for the investors to be well aware of all the facts and financial stability of the businesses, this is where the due diligence audit comes into the picture as it helps in portraying the true and the fair image of the investment.
Due diligence can be performed in the below either way. Investors always perform due diligence whenever they are planning to invest in any sort of project whether major or minor. Due diligence is necessary at the time of investing so as to analyse the level or the intensity of the risk to be encountered and the returns that the project or the investment is going to yield.
Proper investigation or due diligence is also performed by the seller on the buyer while selling any product or financial products so as to ensure that the buyer is capable or financially strong enough to pay for the products/services purchased.
Due diligence Audit is performed by the companies or businesses that are seeking to make acquisitions. The acquiring company thoroughly and completely assesses the acquired company’s assets, financial soundness, capabilities, and performance of being acquired company.
Auditors in UAE and Egypt provide due diligence audit services to the investors in identifying and assessing the financial performance of potential business prospects. Apart from this, after the due diligence analysis, the best and the correct price of the deal could be identified as all the internal loopholes of the prospect are identified and the ideal price of the deal could be finalized on the basis of the due diligence audit report.
WFG (Waleed financial Group) are one of the best auditors in the UAE and Egypt who have specialized in all kinds of audits and have expertise in the due diligence audit and provide a complete audit report after the careful and logical assessment of the acquired company so that the acquiring company is aware of all the assets and liabilities owned and owed, as well as the financial viability and stability of the company.