QofE stands for “Quality of Earnings” which is a process involving a CPA doing an audit of the financials. In many cases, our clients are doing cash accounting. The QofE wants to confirm that the accounting is accurate if converted to an accrual basis accounting. It typically takes 2-3 weeks to conduct. If the findings show that the company has accurate accounting, then we move to the next aspect of diligence. If the accounting is not accurate, falling short of assumptions, then the buyer may ask for an adjusted valuation.