THE USE OF DUE DILIGENCE PROCEDURES TO ENSURE TRANSPARENCY OF FINANCIAL REPORTING IN JOINT-STOCK COMPANIES
DOI:
https://doi.org/10.5281/zenodo.18110290Keywords:
joint-stock company, financial reporting, transparency, Due Diligence, investment risks, corporate governance.Abstract
This article examines the role of the Due Diligence procedure in ensuring the transparency of financial reporting
of joint-stock companies. The study identifies key contemporary challenges affecting the reliability of financial reports,
including insufficient disclosure of information, non-compliance with international standards, and limited accessibility of
data for investors. A model for integrating Due Diligence into the financial reporting process is proposed, based on a
structural and modular approach to the analysis of both financial and non-financial aspects of corporate activities. The
article outlines the main stages of implementation and proposes an interaction algorithm between corporate governance
participants and independent auditors. The effectiveness of Due Diligence as a mechanism for enhancing investor and
regulator confidence is substantiated
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