Due diligence is an evaluation process that involves a thorough and systematic review of documents and information related to a business or transaction. In the financial context, due diligence is employed to verify the validity of provided information and assess the risks associated with a proposed transaction before finalizing it with an additional party. The review may include analysis of financial data, assets and liabilities, future projections, as well as ongoing operations and contracts. Essentially, due diligence is a way to ensure the accuracy and reliability of information employed to make financial decisions.