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Due Diligence Gets Tougher: A loose term now means a whole lot more work
Aug 5. 2002 | The Investment Dealers’ Digest | by Barbara Etzel.

What constitutes enough due diligence anyway? It may be vague enough for attorneys to argue about, but there is no doubt that the bar has just been raised due to the steady diet of scandals and investors' mistrust of Wall Street. Attorneys say that the level of due diligence will continue to increase. That is because it will be up to advisers on all types of deals, stock and bond offerings as well as mergers and acquisitions, to make certain the company is complying with all the new laws that are being instituted. Corporations will need a policy for setting up internal controls and to have an independent audit committee. Their top officers will be required to certify the accuracy of their financial results, and those who falsely do so will face jail time and million-dollar fines. Companies will also be taking a closer look at their internal disclosure policies. That means that underwriters and their attorneys must understand what the company's policies are and make certain they are following them.
due_diligence  scandals  Wall_Street  investors  mistrust  financial_advisors  internal_controls  audits  disclosure 
september 2012 by jerryking
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