Учёт. Анализ. Аудит (Jan 2019)
The Concept of the Due Diligence Procedure as the Modern Auditing and Consulting Services
Abstract
This paper presents the concept of the Due Diligence procedure as modern auditing and consulting services. Conducting the Due Diligence involves the investment research implementation. The results of this research are the identification of risks that can have influence on a proposed capital market transaction, and the design of risk management techniques. The authors note one important applied problem - currently there are no professional auditing standards and methodological recommendations in the Russian legislation which regulate the process of organization and conducting of the Due Diligence procedure that accompanies auditing services. The objectives of this article are to synthesize the results of earlier studies and to determine the key elements of the concept which is needed to develop the working techniques of conducting the Due Diligence in the Russian Federation. In this paper the tasks are determined as the presentation of an algorithm for risk assessment in the Due Diligence procedure, the proposal of the main provisions of standards or methodological recommendations for the Due Diligence services, the formation of the glossary of terms for the purposes of developing of the working techniques of the Due Diligence. The relevance of the topic is determined by the necessity of the innovative development of theoretical and methodological bases of auditing activities in the Russian Federation. The conditions for further improvement of professional practices should be made to provide high-level auditing and consulting services as well as other auditing services in order to meet present day’s information needs of capital owners, who have to make decisions on investing in constantly changing and highly risky economic environment.
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