Distinguish between the following: 'Financial due diligence' and 'tax due diligence'.

Financial due diligence Financial due diligence provides peace of mind to both corporate and financial buyers, by analysing and validating all the financial, commercial, operational and strategic assumptions being made. Financial Due Diligence includes review of accounting policies, review of internal audit procedures, quality and sustainability of earnings and cash flow, condition and value of assets, potential liabilities, tax implications of deal structures, examination of information systems to establish the reliability of financial information, internal control systems etc. Tax due diligence The tax due diligence comprises an analysis of: tax compliance tax contingencies and aggressive positions transfer pricing identification of risk areas tax planning and opportunities.