A due diligence audit applies audit-level testing rigor to a target business's financial statements and underlying records specifically for a transaction — going deeper than a standard financial due diligence review into verification of balances, transactions and disclosures. It's typically used where the transaction size or risk profile calls for audit-grade assurance rather than an advisory-level review alone. *(See also Financial Due Diligence under Business Advisory & Virtual CFO Services for the advisory-level version of this work.)*

An audit-level examination of a target company's financial statements and records performed specifically to support an acquisition, investment or major transaction decision.

Who needs it?
Buyers and investors in larger or higher-risk UAE transactions, businesses whose lenders or boards require audit-grade assurance before a deal, and parties to a transaction where target financials haven't previously been audited.

- Audit-grade verification of the numbers behind a transaction

- Higher assurance than an advisory-only review for higher-stakes deals

- Independent findings that hold weight with boards, lenders and co-investors

- Clear documentation supporting negotiation and post-deal integration

1. Define the audit scope based on the transaction and its risk profile

2. Perform audit-level testing of financial statements and key balances

3. Verify disclosures, contingencies and significant transactions

4. Deliver an audit-grade due diligence report supporting the transaction

Cost Factor ~ Based on target company size and complexity, transaction value, and the level of assurance the deal structure or lenders require.

Timeline ~ Typically 4–8 weeks depending on target complexity and record quality, run in parallel with commercial and legal due diligence workstreams.

Audit-level due diligence is typically called for on larger transactions, when lenders or investors specifically require audit-grade assurance, or when the target has never been audited and the buyer needs a higher level of verification than analytical review alone provides. We help assess which level of rigor fits your specific deal.

2. Can a due diligence audit be completed alongside legal and commercial due diligence?
Yes — these workstreams typically run in parallel on a coordinated timeline, since the financial findings often inform legal and commercial questions (and vice versa). We coordinate scheduling with your legal and commercial advisors to keep the overall process efficient.

3. Does a due diligence audit replace the target's own statutory audit?
No — it's a separate, transaction-specific engagement even if the target already has audited financials, since due diligence testing is scoped around the specific deal risks rather than general statutory compliance. Existing audited financials do, however, typically speed up the process.