Events - Neotas Investigative Due Diligence (2024)

FAQs

What is a due diligence investigation? ›

Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party.

There are many possible examples of due diligence. Some common examples include investigating the financials of a company before making an investment, researching a person's background before hiring them, or reviewing environmental impact reports before committing to a construction project.

A due diligence check involves careful investigation of the economic, legal, fiscal and financial circ*mstances of a business or individual. This covers aspects such as sales figures, shareholder structure and possible links with forms of economic crime such as corruption and tax evasion.

A few tangible principles can help guide the way, including people, performance, philosophy, and process.

diligent investigation means inquiry of employees who should have knowledge as to the matters involved and review of records of Borrower but does not require the engagement of third parties to conduct independent reviews and examinations.

Due diligence is the process of examining the details of a transaction to make sure it's legal, and to fully apprise both the buyer and seller of as many facts in the deal as possible. When the deal satisfies both aspects of due diligence, the two parties can finalize and correctly price the transaction.

Due diligence requires the accused to "take all reasonable steps" or "all reasonable care" to avoid the harm that resulted. Due diligence defence is also available where the accused "had an honest but mistaken belief in facts which, if true, would render the act innocent."

One of the key benefits of due diligence is minimizing any potential risks that come with it. During an investigative audit, you learn how to overcome those roadblocks and avoid costly mistakes. To begin with a partnership, acquisition, or investment, you must exercise due diligence.