due diligence
Due diligence - (engl. — maintenance of due conscientiousness) is a system or a complex of the analytical and operative actions directed on all-round check of legality and commercial appeal of the planned transaction, the investment project, procedure, etc. with the purpose to avoid or as much as possible to lower existing enterprise risks (legal, tax, political, marketing, etc.).
Usually the procedure is done by forces of three divisions: financial analysts and appraisers; auditors; lawyers.
The task of auditors is to lead financial audit of activity of the enterprise including: the analysis of structure of proceeds and expenses of the Company for the analyzed period, the analysis of the basic parameters of activity of the Company, an estimation of system of the internal control over the document circulation concerning charges of the Company, the selective analysis of quality and completeness of the documents confirming charges of the Company, the analysis of the basic means: the general structure, the added deterioration, results of reassessment, the analysis of financial investments of the Company, the analysis of debts, the analysis of stocks of the Company: structure, cost, dynamics, the analysis of creditor debts, the analysis of conditional obligations (penalties; the guarantees which have been given out in maintenance of debts of the third parties; endorsed bills; Mortgages and other), the analysis of completeness and reliability of the account of actives and the obligations reflected behind balance of the Company, revealing and generalization of all essential tax risks which have been not considered and (or) potential tax obligations.
AXIUM AUDIT can offer:
- Complex audit (standard audit + a report for company owners and top-managers including conclusions and proposals of management decisions)
- evaluative («pre-sales») audit (business accounting and tax accounting evaluation, evaluation of economic sanctions and their effects).
