AB Ltd. wants to acquire XY Ltd. The areas required to be covered by auditors were financial statements, tax compliance, contracts, intellectual property, human resources, IT systems, regulatory compliance, and potential

AB Ltd. should conduct takeover audit. To provide the desired results to an investor and to ensure that the acquisition is executed in the most effective manner, the concept of the takeover audit has been evolved, the takeover audit provides a cost benefit analysis to suggest a strategic plan for the long-term investment strategy. The audit provides for the Acquisition Audit as well as the Inter se Transfer performed by the acquirer. Internal auditors or professionals with this domain expertise can contribute significant value by ensuring that a vibrant due diligence process is in place and operating as intended. Takeover audit for merger/acquisition/ takeover could be done as three parts: pre acquisition, post-acquisition and sell-side. A rigorous audit vide due diligence process help companies take advantage of legitimate new business opportunities, while at the same time help minimize the risks. A strong audit cum due diligence process is critical to ensure that the acquirer is fully aware of all aspects of the proposed transaction and provides access to vital intelligence that is used to negotiate the final price and integrate the new subsidiary more effectively. The takeover audit primarily includes: Identification and Categorisation: Identify and categorises of acquirer i.e. promoter, promoter group, person in control, persons acting in concert, associates, immediate relatives etc. Timely Disclosures: Ensuring that the timely disclosures have been made by promoters, members of promoter group and PAC's relating to acquisition, transfer and encumbrance. Monitoring of Promoters Holdings: Effective monitoring of the holdings of promoters, members of promoter group and PACs and take necessary action as required. Timely Intimation: Ensuring that timely intimation is sent to stock exchanges in respects of transfers exempt under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations) Regulations, 2011 (SAST Regulations). Timely reports under SAST: Ensuring that timely reports are filed in respect of transfers exempt under SEBI (SAST) Regulations with stock exchanges and SEBI, if applicable. Checking timely compliances: Thoroughly examine the takeover regulations through checklist and timeline for compliances.