Compliance Due Diligence
Due diligence is used on various occasions, but most often during company acquisitions. The most diverse areas of a company can be analysed - economically, legally and technologically. Specific compliance due diligence identifies the risks of a company and subsequently examines them in detail. The existing compliance management system should also be fully analysed. The aim is to be able to financially assess future risks in order to make budgets more predictable.
Certain national laws, such as the UK Bribery Act, Sapin II in France and the Foreign Corrupt Practices Act (FCPA) in the USA, impose certain auditing obligations if one of the transaction partners is based in the countries mentioned.
A component or variation of this is integrity due diligence, in which the business partners of a company are analysed and audited. Business relationships with previously charged, previously convicted or dubious partners can become problematic for companies. This can be remedied by using a system that systematically checks business partners and adequately documents this. See also Third Party Check.
See Haufe Group at: www.haufe.de/compliance/management-praxis/compliance-due-diligence_230130_474874.html (accessed on 03.06.2020).