According to a definition due diligence is , “a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.” Simply speaking we can say that, due diligence can be referred to as an investigation, audit, or review which is performed to confirm the true facts of a matter that is under consideration. Specifically, in the financial world, due diligence means an examination of financial records before entering into a proposed transaction with some another party.