APES 350 Participation by Members in Public Practice in Due Diligence Committees in Connection with a Public Document

APES 350 took effect on 1 January 2020 and was revised in November 2019. It requires members in public practice in Australia to adhere to its mandatory requirements when they provide professional services that involve participating in or reporting to a DDC in connection with a public document. Where the transaction is undertaken, in whole or in part, outside of Australia or is subject to international laws, members are required to adhere to the requirements of the standard provided that the laws and regulations of the relevant jurisdiction are not breached. For members in public practice outside of Australia the scope of APES 350 must be followed to the extent local laws and/or regulations are not contravened.

APES 350 reminds members in public practice of their professional obligation to document and communicate the terms of engagement in accordance with APES 305 Terms of Engagement.

APES 350 details the typical roles a member may undertake in relation to a due diligence process, which are as a DDC member, a DDC observer, a reporting person, and provides several mandatory requirements and guidance in relation to such engagements.

A key aspect of APES 350 is the due diligence sign-off reporting requirement. A pro-forma example of a due diligence sign-off is provided in Appendix 1 of the Standard. Where a member is asked to provide draft or interim reports, the member should include appropriate disclaimers in these reports to indicate that the reports are not complete.