Due dilligence

Question 1

Difference between audit and due diligence

Answer 1

Whereas the audit focuses on the current year financial statements, due diligence focuses on a wider scope on the entity as a whole, even including more than one year of accounting periods, discussing management and future projections, whereas the audit is online concerned with future projections if the effects are going to occur.

Question 1

what type of engagement is due diligence?

Answer 1

Its a review engagement, which usually does not provide any opinion, but rather only the factual findings, and if need be, by the directors or the acquisition entity, it will provide a limited assurance.

Question 2

What is the Puropose of a due dilligence

Answer 2

Fact finding
Investigative due dilligence
verification of management representatives
Identification of assets (Esp. inatbibles )
Indetification of liabilities
determining operational issues
Acceptance planning: positive and negative aspects
management involvement
credilbiltiy

Question 3

What about DD rules

Answer 3

DD is not legally reuired and are subject to less rules thab auduting and the rules are presc riped under ISRE.

Question 4

Difference between audit and dd

Answer 4

Requirements
Audience
form of insurance
wording of opinoin
evidence
(just know the headings and the content; just understand and fill; DO not mug up; its a waste of time.)

Question 5

Due dilligence is more of fact finding+.

Question 6

Procedures of due dilliegence

Answer 6

5 points jst guve it a read p237.