Audit to FDD: what changes?
What actually changes when you move from external audit into financial due diligence, beyond the obvious differences:
Similar skillset, very different question Many FDD hires come from audit. It is often a mix of (1) high performers looking for something more interesting and deal exposure; (2) those with ambitions outside of audit (whether the ambitions be misplaced or not); or (3) those that have had a bad experience in audit but want to utilise the financial skills acquired (note: this is the worst interview answer to a “why FDD?” question). There are similarities - you're still understanding, examining and challenging financial information. Unfortunately you are still working to deadlines. But the underlying question you're answering flips completely. Audit asks "is this number materially correct according to accounting standards?" FDD asks "does this number represent the true, sustainable earning power of this business, and does it change what someone should pay for it?" Two very different mindsets.
You’ll be busy, you just don’t know when Audit’s busy season provides greater levels of certainty as to when the hours will be tough during the year. Unfortunately in financial due diligence, this will be dictated by deal timelines, the projects you are staffed on and when clients need reports. This can sometimes create challenges with taking holidays/annual leave and predicting when you can say “yes” to that mid-week 5-a-side game. This is all a trade-off.
Compressed timelines Audits can last several months. FDD projects are frequently measured in weeks — a first draft of a red flags report might be needed within two-to-three weeks of receiving data room access. The pace forces a different way of working. I see this as a bit of a plus (outside of the anxiety it creates, of course) as it means almost every month you will be examining a new business, speaking to a new management team, learning about the journey of the founder and reviewing completely different financial profiles - that’s exciting (to me, at least).
You're working for the client, not the target In audit, the entity you're reviewing is your client. In FDD, the target company is not your client — the acquirer (or seller, on vendor due diligence) is. That changes how you approach management meetings and information requests: you're not building a collaborative annual relationship with the target, you're extracting and challenging their numbers on behalf of someone else, often under real time pressure. It is common that you will not be liked… so be prepared to receive frosty responses.
More judgement, less checklist Audit methodology is heavily programmatic — checklists, sign-off sheets, standard procedures (a bit dull if you were to ask me). FDD has far more open judgment calls: is this severance cost really one-off, is this founder salary at market rate, does this bonus accrual reflect a genuine one-year distortion? There's no standard answer sheet and no “prior year file”. This is why interviewers spend time probing how candidates think through ambiguous adjustments rather than testing recall of accounting standards. It is absolutely the case that the judgement element doesn’t come on day one (i.e. at the most junior level) - but you will be in the room, in the discussion and be able to shape analysis to support any adjustment.
All you need to know
The below information pack (60+ page document with accompanying example Excel databook) will benefit any individual looking into a potential move into the financial due diligence profession (often referred to as transaction services or transaction advisory services in the market). The information pack will prove useful for potential interview questions or even simply establishing a general understanding of the typical financial due diligence thought-process.
The pack will also be beneficial for any already successful FDD candidate who is looking to acquire a strong technical understanding in order to hit the ground running.
FDD Interview Preparation Pack and Example Excel Databook
Complete FDD (Transaction Services) interview preparation pack (60+ page document + example Excel databook). Insights into the FDD process and detailed technical examples covering all three key FDD workstreams: Quality of Earnings, Net Debt and Net Working Capital.
Candidate feedback on the interview preparation pack:
“I would definitely recommend for anyone interested in FDD to take this course just because of the quality. I bought other materials for higher price and this one is better than other online materials.”-Ting L, March 2026
“Thanks to the wide range of information, I successfully managed to receive a job offer at a Big4 firm in FDD.” — Guido V, March 2026
“This guide was worth every penny. I was able to land two big 4 fdd senior associate offers using the information in this guide and would recommend to anyone looking to do the same.” — James E, March 2025