I have an international corporate client that is currently undergoing an internal due diligence audit by a large public accounting firm in the hopes of being acquired. I prepared their US subsidiary corporate tax return last year and supported them with quarterly return estimates.
To support their review, I provided fresh copies of the firm's tax return and provided them the client information provided to me used to prepare it. They responded by asking for all of my internal workpapers, transfer pricing testing and virtually everything we have associated with the return. The diligence team is also insisting I attend a two hour meeting with all 30 staff working on the review with the client.
I have not provided anymore documents and frankly am pretty uncomfortable with their request and the insistence of the meeting. This is especially true since it has come to my attention through this process that the client's US accounting/books/records may have issues. Have any of you folks dealt with this before? Any thoughts on how to handle?