4 ms·
"We did a whole host of due diligence but when you're lied to, it's hard to find," Are you kidding me? That's the whole purpose of doing due diligence in the f
by ridruejo 14y ago
"We did a whole host of due diligence but when you're lied to, it's hard to find," Are you kidding me? That's the whole purpose of doing due diligence in the first place.
- rayiner 14y agoThe purpose of due diligence is to uncover mistakes and ensure that the books are in order, not to uncover fraud or wrongdoing.
- genwin 14y agoI have a hard time grasping this. If the books are in order, I wouldn't expect to later find significant fraud affecting the books. For example, if the books show $x in orders pending, I'd sample the orders to verify within some confidence level that the lot is worth $x.
- olefoo 14y agoAnd one of the mistakes you should be looking for is the possibility that you are being lied to so thoroughly that it's hard to know what's real and what isn't. It's in situations like that, that forensic accountants earn their salt.
- wangarific 14y agoAnd even if they don't earn their salt, your lawyers should protect you in the representations and warranties section of the definitive agreement.