What are the best DUE diligence questions?
questions about DUE diligence help auditors or other external parties into business or financial operations of the company. Questions do not necessarily record the discreditation of owners or managers of the company, but help to throw light on the stability of the company. Questions often focus on historical financial statements, financial projections, ten best customers, strategic relationships, main competition and strategic operations to maintain relevance in the business environment.
Can I see your last three years of financial statements? The auditors ask this type of DUE diligence questions to see if the statement is easily accessible and whether the company precisely maintains its financial records. These questions also provide auditors' ability to review financial information and find out whether the company maintains documents according to standard accounting standards.
What are your future financial projections? Owners and managers are usually answers for the development of future sales processes. They are going through theseKCE helps society to determine whether to increase or reduce operations in the future. The auditors will use these types of DUE diligence questions to find out how well the management of society understands future changes in the local or national economy.
Who are your top ten customers? This provides owners and managers with the opportunity to give customers that the auditors can talk to confirm the information provided by the company. These ten best customers can be either size, dollars or volume sales, depending on how the company appreciates its clients and customers.
What are your strategic relationships? Strategic relations are companies that help companies produce goods and services. This DUE diligence question is probeing how society uses its brand or other tangible and intangible value in the economy of the market. Owners and managers can prove their reputation by the fact thatIt will show strong relationships with other companies.
Who are your main competitors? Asking the owners and managers to identify their main competitors, shows how well the company management team understands the business environment. The management team may also have to give an explanation of why they determine that the company is the main competitor.
Do you have any strategic operations? Most companies have strategic operations or basic competences that they use to produce goods or services. These help companies to maintain a competitive advantage. The auditors often ask this question to help define how much further they will have to review the company's operation. Companies without strategic operations may have limited strengths compared to other businesses.
The purpose of these questions is usually to provide information to a third party. For example, investors and other stakeholders will use this information to find out whether the company will make a good investment or whether it has in its OPErovate some question marks.