Transaction reality · On both sides
A trusted referral is not the same as independent proof
Published · Reviewed by The Diligence Standard Team · Updated
Transactions involve professionals with different clients, duties, incentives and limitations. Reputation does not erase those boundaries.
How it appears in a real transaction
A referral can be useful. The buyer or seller should still understand who engaged the professional, who receives the work, what was tested and what was excluded.
A practical example
A seller’s accountant prepared clean financial statements for tax and bookkeeping purposes. That does not automatically mean the accountant tested normalized earnings for a buyer.
What to do next
- Ask who the professional represents.
- Read the engagement scope and exclusions.
- Identify conflicts and referral relationships.
- Use independent review where the decision requires it.