Due Diligence

Can someone on here give a detailed account of what is involved here?

It depends on the situation I think,

In a situation such as ours it would probably be primarily researching further into the financial details, going through the publishes accounts as well as more in depth financial information.
Going through everything and scrutinizing the numbers
Basically checking everything is as it should be, or as it has been portrayed and ensuring there aren't any hidden secrets that they may not have been told about ( tax bill anyone? )
I'm sure someone else can give a more detailed answer, but I think that's roughly it

In Cardif City's case, prospective investors study the accounts, the cheeks of their arse fly together immediately and they return to their homeland never to be seen again. Does that help?

The words Due Diligence in the financial sense describe the process by which a bank or financial institution checks the identity, background and other aspects of the source of wealth of potential and existing customers. High quality due diligence requires careful and persistent effort by a financial institution to find out about the background and source of wealth of a customer. This provides two key benefits for the risk-aware financial business – first, comfort that the firm is not exposing itself to excessive risk of being used by criminals to launder the Proceeds of Crime; and second (and equally important), sufficiently detailed knowledge of the customer's source of wealth and financial position to be able to sell products which are appropriate and which help the customer and the firm to make money.

In Cardif City's case, prospective investors study the accounts, the cheeks of their arse fly together immediately and they return to their homeland never to be seen again. Does that help?

Nicely summed up.