Due Diligence is a field of specialized knowledge, which helps reduce the risk of acquiring unseen liabilities and risk exposures associated with a commercial transaction. It involves a reasonable investigation of a proposed investment deal and of the principals offering it before the transaction is finalized to check out an investment's worthiness; generally performed by the investor's attorney and accountant.
Forensic accounting is the specialty practice area of accounting that describes engagements which result from real or anticipated litigation, and encompasses both litigation support and investigative accounting. Forensic accounting has many contexts. It could involve reconstructing records accidently or intentionally destroyed; investigating accounting records including tracing transactions to supporting source documents; requesting known financial documents; coordinating requests for replacement documentation; and analyzing financial results and balances for completeness and reasonableness.