Due diligence

On single basis we perform the due diligence review of active companies based on accounting aspects upon a change in the ownership of the undertaking, interest expressed by potential investors or inspection performed by the owner.

During the due diligence review we identify the weaknesses of the company’s business conduct, the potential hidden liabilities and tax risks. Thanks to our expert team our company is commissioned more and more often with the financial due diligence review of domestic companies, mostly by foreign companies wishing to invest in Hungary.

As part of the review of accounting procedures we inspect – amongst others – the following:

  • Corporate documents, legal matters;
  • Internal regulations, accounting policy and other accounting regulations;
  • Deadline of incoming and outgoing information;
  • Passwords and access rights;
  • Contact persons within and outside the company;
  • Forms and deadlines of report generation;
  • Accounting information system (accounting application) and other pieces of software;
  • Cost centres and cost bearers;
  • Inventory management, handling of settlement advances;
  • Settlement of receivables/payables;
  • Asset registration, inventories;
  • Cash management;
  • Exchange rate utilisation;
  • Management of accruals;
  • Transactions with related companies (e.g. loans, royalties, other services);
  • Tax returns and tax calculations;
  • General ledger reconciliation of payroll figures, review of employment administration;
  • Special tax types and payment obligations (green tax, company car tax, etc.)
  • Utilisation of vocational training contribution;
  • Local taxes, breakdown by business site;
  • CSO or other administrative (NBH, HFSA) obligations and related information.

The results of the due diligence review are summarised in a report, which contains the findings, risks and proposals for potential solutions, as well as responses to questions arising based on individual needs. After the due diligence review, upon request, we also prepare an action plan and specify deadlines in connection with the identified problems and also participate in the implementation of the required solutions.