Question

Which of the following is defined as a security analysis of the transaction within its approved context?

a) Forensic accounting
b) Risk assessment
c) Compliance audit
d) Due diligence

Answer 1

Due diligence is defined as a security analysis of the transaction within its approved context.

Step-by-step explanation:

The correct answer is due diligence. Due diligence refers to the process of conducting a thorough investigation or analysis of a transaction or investment before making a decision. It involves examining all relevant details and assessing the risks and potentials of the transaction within its approved context.

For example, when a company is considering acquiring another company, due diligence would involve reviewing financial records, conducting background checks, and analyzing the legal and regulatory compliance of the target company.