Due diligence audit
This is the process of evaluating a prospective business decision by gathering information about the financial, legal, and other material of the other party.
Due diligence is used most often when buying a business. The buyer spends time going through the financial situation of the business, legal obligations, customer records, and other documents. The prospective buyer wants to validate his/her opinion of the business to determine whether it is a viable business decision.
If you don’t do your “due diligence” in a business situation, you may end up buying something that isn’t as you thought it was, or you may end up in a business relationship that will cause you trouble.