- Due Diligence is an investigation or audit of a business prior to signing of a contract, or an act with a certain standard of care. It may also be potential investment or product to confirm all facts.
- It involves reviewing all financial records, and anything else deemed material.
- In the investment world, it is performed by organizations seeking to make acquisition, by fund managers, by brokers for effecting their transactions fruitfully.
- It is the process used to examine an individual or company’s financial information for use as evidence in court.
- It helps to detect diversion of funds, willful default and window dressing of financial statements.
Information System Audit
- This audit focuses on the organization Information system and its related operations. This is generally done with other types of audits like financial, etc.
- It evaluates and examines the data from IT systems and evaluates their reliability, especially the ones effecting the financial statements of the organization.
- It is known by various names like Information System Audit, technology audit, computer audit, etc. IT looks into the technical operation, data center operation and other application controls.
- It is the physical verification of the inventory. However at times it may also include valuation of the inventory, however, this may depend upon the terms of engagement.
- There may be a specific requirement of a stock audit depending upon the type, size and purpose for which it is carried out.
Various Other Audit & Certifications:
- Management Information System Audits (IT Auditor)
- Receivable/ Payable Control
- Withholding (TDS) & Corporate Tax Audit
- Internal Control Audit
- Audit under GST Act
- Bank Audits (namely Statutory, Concurrent, Revenue & Stock Audit)
- Inventory Audit, Physical Verification & Stock Takings
- Valuation Audit & Certificate Under Various Acts
- Audit of Foreign Exchange Transaction & Foreign Remittance Certification (15CA/15CB)