A due diligence audit in a process of assessment of an organization to evaluate its financial health and performance. It helps to understand the company competencies, the target market, potential customers and profit-making capabilities. In general, companies want the due diligence audit firms to prepare an audit report at the time of merger & acquisitions of business. It helps is decision making, keeping all risks and opportunities on front. Due diligence audit can be a legal obligation, but it commonly applies to voluntary investigations.
Types of Due Diligence Audit:
Following are the most common type of due diligence audit in UAE:
Financial Due Diligence
Audit firms in Dubai, UAE review the transaction data, historical trade results, cash flow & balance sheet of a company to validate the financial statements. The purpose of hiring financial due diligence auditors is to know the financial risk & forecast of the company. It also includes funding requirements of a business in future.
Commercial Due Diligence
Commercial due diligence will determine the various commercial factors including competitors analysis, target market research, product reviews, service feedbacks & any other data the acquirer want to know.
Operational Due Diligence
The operational due diligence involves examining the non-financial factors of a company. To have the better understanding of business operations, organizational structure, internal process& system, performance evaluations of the management team and HR process of a specific company, auditors in UAE conduct this type of due diligence audit.
Legal Due Diligence
Legal due diligence helps to evaluate any legal risk involved with the company. It identifies any legal disputes whether with local bodies, competitors or with its own employees.
Jitendra Chartered Accountants is a full-fledged audit firm in Dubai, UAE. We offer all kind of due diligence audit services to help you in making a decision to merge or acquire a company in the UAE without getting into any kind of post-transaction trouble.