Question

The internal auditors are part of the team performing a due diligence review for the purchase of a waste disposal business. The scope of their work will most likely not include

A. A review of the acquiree's procedures for acceptance of waste material and comparison with legal requirements.
B. An appraisal of the value of investments owned by the acquiree.
C. An assessment of the benefit of integrating the acquiree with the acquirer's business.
D. Analysis of the acquiree's compliance with employment laws.

Answer 1

Internal auditors in a due diligence review are unlikely to appraise the value of investments, which is a job for valuation experts, and would instead focus on compliance and integration-related assessments.

Step-by-step explanation:

The internal auditors are part of a team performing a due diligence review for the purchase of a waste disposal business. Among the listed options, the scope of their work will most likely not include B. An appraisal of the value of investments owned by the acquiree. This task is typically carried out by financial analysts or valuation experts, who specialize in determining the worth of investments and assets.

Internal auditors would focus more on ensuring that processes and regulations are being followed, which aligns with options A, C, and D in assessing compliance with legal standards and the potential benefits of integration with the acquirer's business.