List out the key differences between Statutory Audit, Internal Audit and Due Diligence.

Parameter Statutory Audit Internal Audit Due Diligence Appointed by Shareholder of a company Management of the company Normally by the buyers and, in certain cases by the management of the target. Reader of the Report Shareholders, regulatory authority Management Deal Making Parties. Extent of Reliance on information provided by management Relatively high Relatively high Low to medium; the information is first challenged/tested for its reliability. Mandatory Mandatorily required under statute Mandatorily required under statute for specified class of companies Not Mandatory Objectives To report on the truth and fairness of the financial statements To report on specific issue with the internal processes of the company To highlight exposures and upside of the targets Scope Defined by the statute itself mainly limited to financial analysis Defined by the management - limited to financial analysis No specific scope defined by the buyer or seller (in case of vendor due diligence). The scope largely depends on deal mechanics and the agreement among the parties involved. Includes not only analysis of the financial statements but also business sustainability of the business, future aspects, corporate and management structure, legal issues etc. Perspective and focus Focuses on historical information Adopts a futuristic approach based on the available information Blend of both historical and futuristic perspectives Confidentiality Low; in the case of listed companies, the audit report is publicly available and in other type of companies also it is available as a public document in public domain at a payment of prescribed fees to the MCA. High normally, only management has access to the report High; only the deal making parties have an access to the report Type Post mortem analysis Analysis of the current situation like timely diagnosis and treatment Useful for the future decisions