When a company aims to acquire another company, this process would be needed in order for the acquirer to closely examine the assets and debts which the target company holds. Otherwise, the acquirer may find any negative matter after the acquisition, which means it's too late. If they execute financial due diligence properly and find out any critical matter which suggests that they shouldn't buy out the target, they may be able to avoid any incovenience.

It depends on the company. I'd say that it sometimes doesn't go well because some target companies hold off-the-book liabilities that can't easily be found even by professional accountants. Later the acquiring company realizes there are more liabilities than they expected. This process is necessary, so there aren't any bad consequences; however, it costs a lot. Therefore, a good balance between how much it costs and how careful an examination is would be important.

I think we have to be careful with both the good    and bad aspects of the company, which means we have to view the matter objectively. In practice, a potential buyer engages an accountant as a professional player who performs the due diligence instead of the buyer and the advisor.

Exactly. When it comes to timing for analysis of company finances, financial due diligence differs from an audit. Audits analyze company finances for the fiscal period.

Yes, I've experienced this process before because I was in charge of M&A deals as a financial advisor. In practice, a potential buyer engages an accountant as a professional player who performs the due diligence instead of the buyer and the advisor.