The following are examples of hard due diligence, except;a.Assessments of subcontract and other third-party relationshipb.Review and audit financial statementsc.Agreed upon procedures reportsd.Validation of projections of future performance
Question
The following are examples of hard due diligence, except;a.Assessments of subcontract and other third-party relationshipb.Review and audit financial statementsc.Agreed upon procedures reportsd.Validation of projections of future performance
Solution
The correct answer is d. Validation of projections of future performance. This is considered a part of soft due diligence as it involves subjective judgement and future predictions, rather than hard, factual data. Hard due diligence, on the other hand, involves the verification of factual data such as financial statements, contracts, and legal documents.
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