Financial Due Diligence - Short Engagement, Software/Data Business

Background We are a private equity investor conducting diligence on a B2B data and software business. Group revenue is c.$28m across three operating entities in two jurisdictions. The company is growing quickly but has a basic finance function, so we are not confident the numbers presented to us are accurate. We have completed our own commercial and contract analysis. What we need is a professionally qualified accountant's view on how the business currently accounts for revenue and cost, and what that means for the reliability of reported earnings. Deliverable A red flag FDD report identifying accounting issues and quantifying them where possible. We are not asking for a full restatement or a completed quality of earnings report - we want the issues surfaced, sized and prioritised. Scope - Reconstruct the P&L, balance sheet and cash flow statement on a basis consistent with international accounting standards, with particular attention to revenue recognition and the treatment of R&D costs - Quality of earnings assessment, including normalisation of one-off and non-operating items Subscription and SaaS metrics: ARR/MRR derivation, retention and churn, and whether these are supportable from the underlying contract base - A prioritised list of questions for management and their auditor