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
Below are the most common types of due diligence audit services in Dybaum UAE:
1. 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.
2. 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.
3. 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.
4. 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.
Scope of work for due diligence services
The scope of the due diligence review, which is always determined in conjunction with you, depends on the size and scale of the transaction and the surrounding risks. Our due diligence services focus on the most critical elements of transactions, including:
1.Identifying and quantifying industry and deal-specific risks and opportunities.
2.Identifying hidden costs, commitments and contingencies.
3. Identifying and quantifying tax exposures.
4. Identifying and quantifying liabilities that can be deal breakers; and
5. Highlighting issues likely to affect the purchase price or contract conditions.
How can we help?
Our Due Diligence reports can provide automated insights, standard and enhanced due diligence. They are suitable for any sector or business size, situated in any location in the world. Based on your organization's risk-based approach and internal policies you can rate your suppliers and third parties.
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