Corporate Due Diligence Investigations: Safeguarding Business Decisions

Introduction

Due diligence is a critical part of the decision-making process in today’s high-risk business environment. Whether you are evaluating a new client, vendor, joint venture partner, acquisition target, or litigation adversary, it is essential to obtain independent, verifiable information before entering into a business relationship. Thuro has been performing corporate due diligence investigations for over 70 years, with a reputation for timely, accurate, and actionable intelligence.

This white paper explores the importance of due diligence in business relationships, outlines Thuro’s investigative process, and introduces enhancements for accounting firms and auditors in light of the PCAOB’s new Quality Control Standard, QC 1000.

Why Due Diligence Matters

A robust due diligence investigation helps companies:

• Identify potential legal and reputational risks.
• Confirm the background and integrity of counterparties.
• Comply with internal risk management policies.
• Meet regulatory obligations in areas such as anti-bribery, sanctions compliance, and financial disclosures.
• Avoid litigation, enforcement actions, or failed business ventures.

Failures in due diligence can result in financial losses, reputational harm, compliance failures, and even criminal liability. The stakes are high, particularly in regulated industries and global markets.

Thuro’s Investigative Process

Each Thuro investigation is tailored to the risk level of the subject, the purpose of the inquiry, and the client's specific needs. Our investigations fall into three tiers:

Level 1: Basic Corporate Check

• Verifies legal existence and registration.
• Identifies officers, ownership, and related entities.
• Screens for federal criminal records and sanctions lists.
• Confirms physical address and public contact information.

Level 2: Standard Due Diligence

• Adds civil litigation and criminal court checks at federal and county levels.
• Reviews liens, judgments, and bankruptcy filings
• Verifies education and professional licenses of principals.
• Searches SEC, CFTC, and FINRA enforcement databases.
• Screens media and web sources for adverse coverage.

Level 3: Full Scope Investigation

• Includes all Level 2 elements.
• Reviews of social media and online activity for risk indicators

Each report is delivered in a narrative format that is easy to read and includes highlighted findings, risk flags, and our assessment of credibility or concerns.

Social Media and Digital Reputation Screening

A vital component of modern due diligence is assessing the online reputation of individuals and companies. Social media screening, adverse media monitoring, and open-source intelligence gathering help identify behavioral red flags, political or activist affiliations, and evidence of fraud, discrimination, harassment, or unethical conduct.

Thuro incorporates this analysis in all high-level due diligence and client acceptance investigations.

Enhanced Due Diligence for Auditors and CPAs Under PCAOB QC 1000

In 2025, the PCAOB adopted QC 1000, a new standard requiring audit firms to implement rigorous quality control systems, including procedures for client acceptance and continuance. Under this standard, auditors must:

• Evaluate the integrity and legal eligibility of potential clients and their leadership.
• Assess whether the audit firm has the capacity and resources to perform the engagement.
• Document background research, risk indicators, and professional skepticism applied.

Thuro’s due diligence services directly support these requirements. Our investigations are used by four of the ten largest audit firms globally, along with national and regional CPA firms, to:

• Screen potential clients before engagement.
• Vet audit committee members, officers, and beneficial owners.
• Identify litigation history, sanctions exposure, and adverse reputation.
• Confirm regulatory compliance, licensing, and independence status.

With enhanced scrutiny from PCAOB inspectors and rising litigation risk, auditors cannot afford to overlook investigative due diligence. Thuro offers audit-ready reports, escalates critical red flags immediately, and ensures confidentiality throughout the engagement process. Thuro can help you meet the new PCAOB standards before it becomes effective in December 2025.

Global Reach, Local Insight

Thuro maintains investigative capabilities in over 100 countries through a global correspondent network. Whether researching an offshore fund, a sanctioned Chinese entity, or a domestic LLC with opaque ownership, we deliver accurate, jurisdiction-specific intelligence. Our systems are SOC 2 compliant, and all data is securely stored and transmitted.

Conclusion

Due diligence is no longer optional. For businesses, law firms, investors, and accounting firms, it is a regulatory expectation and fiduciary obligation. Thuro's investigative services combine time-tested methods, experienced analysts, and advanced data tools to help you make informed decisions, protect your reputation, and comply with legal standards.

Let us help you see around corners and into the character of those with whom you do business. Feel free to contact me at kprendergast@thuro.ai to discuss how we can protect your business, your people, and reputation.

About the Author

Kevin Prendergast is the President of Thuro, a corporate investigative firm serving professional services firms and regulated industries since 1953. He is a licensed attorney, a compliance advisor, and a recognized leader in investigative due diligence. Kevin oversees high-risk client vetting, anti-corruption investigations, and engagement readiness for global accounting and law firms.