The due diligence audit is carried out for various purpose. The most common reason for conducting such an audit is for purpose of takeover or share valuation. This exercise will give an ‘inside’ view for the acquiror on the strength and weaknesses of the acquiree company before any deal is finalised. This is to avoid the acquiror from being misled by possible errors in the financial statement.

Our approach depends on the requirement by the client but in most cases it covers both the financial as well as non-financial aspect of the acquiree company. Understanding that our work, to large extent, provide as a crucial input to acquirer’s decision, a detail work on the account balances is thus necessary. Physical inspection of assets/documents is conducted whenever possible, third party confirmation is requested and even liase with the authority will be conducted