In industry, a due diligence audit is simply a diligent review into a company’s full financial picture. These audits usually occur before a big acquisition, merger, or other action that may adversely impact the finances of one or more firms. Due & diligence analysis is usually conducted before purchasing a corporate company or sanctioning loans and credit to ensure if the relevant details are in line with the one provided. In cases of corporatization, disinvestment, stock offers, leveraged buyouts, leasing, borrowing, venture funding, business consolidation, etc., due diligence is carried out.
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