Financial Auditing
Independent financial due diligence and audit support aligned with Iranian Accounting Standards and IFRS.
Iranian companies report under Iranian Accounting Standards, which differ in important ways from IFRS — particularly around inflation accounting, foreign-currency translation, and related-party disclosures. Our financial team rebuilds the target's numbers into a format your board and lenders can read, and flags the adjustments that matter for valuation.
What’s Included
Quality of Earnings
Normalisation of reported EBITDA for one-offs, related-party transactions, and FX distortions.
- Run-rate adjustments
- Owner add-backs
- Subsidy normalisation
- FX impact analysis
- Working-capital review
Tax Position Review
Verification of corporate tax, VAT, and payroll positions with the Iranian National Tax Administration.
- Tax certificates
- Assessed vs. declared
- VAT reconciliation
- Withholding compliance
- Open assessments
Debt & Cash Walk
Bridge from reported cash and debt to net debt usable in an enterprise-value calculation.
- Bank confirmations
- Off-balance-sheet items
- Shareholder loans
- FX-denominated debt
- Working-capital normalisation
IFRS Conversion
Translation of Iranian-GAAP statements into IFRS-equivalent format for foreign-investor consumption.
- Revenue recognition
- Lease treatment
- Impairment testing
- Deferred tax
- Pension liabilities
Forensic Review
Targeted procedures where related-party flows or undisclosed liabilities are suspected.
- Journal-entry testing
- Vendor-master review
- Cash-flow tracing
- Inventory verification
- Whistleblower follow-up
Statutory Audit Liaison
Coordination with the target's Iranian statutory auditor and the Securities & Exchange Organization.
- Auditor briefing
- SEO filings review
- Management-letter follow-up
- Subsequent-events review
- Board reporting
How We Engage
Engagement Scoping
Define materiality, look-back period, and key value drivers.
Information Request
Issue a structured data request and chase outstanding items.
On-site Procedures
In-person review of ledgers, contracts, and physical assets at the target.
Red Flag Memo
Interim findings memo so deal terms can be re-negotiated early.
Final Report
Detailed financial DD report including adjusted EBITDA, net debt, and working-capital target.
Get a Defensible Financial Picture
Commission an IFRS-equivalent financial DD report before you fix your offer price.
Separate accounting profit from cash available to investors
Start with a reconciliation between financial statements, tax filings, bank movements and management accounts. Inflation, exchange-rate movements, related-party pricing and overdue receivables can make reported earnings a poor guide to sustainable cash generation. Financial due diligence is not a statutory audit opinion. Specify whether the engagement covers earnings quality, working capital, debt, accounting-policy differences or forensic procedures, and have any required audit performed by an appropriately licensed independent auditor.
What you receive
Evidence to prepare
- Financial statements, ledgers and tax filings for the agreed period
- Bank confirmations, debt terms and aged receivables
- A bridge from reported earnings to normalised cash flow
Engagement timeline
Planning estimates only. Confirm the schedule in the proposal; authority decisions, document availability and bank acceptance may change it.