In due diligence, the problem is not having uncertainty. The problem is hiding it. A serious report separates what is verified, what is unknown and what remained out of scope.
Practical definitions
- Known: direct evidence reviewed.
- Unknown: not enough evidence to assert.
- Not Verified: not verified due to scope, time or access.
- Assumption: assumption used to analyze impact.
Why it changes the decision
This matrix allows the client to condition a deal, request additional evidence, pause integration or accept residual risk with more honesty. Saying “not verified” does not weaken the report; it makes it more credible.