Glossary/Code Audit
Due Diligence & M&A
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What is Code Audit?

TL;DR

A code audit is a comprehensive review of a codebase to assess quality, security, maintainability, and hidden risks.

A code audit is a comprehensive review of a codebase to assess quality, security, maintainability, and hidden risks. In M&A contexts, code audits reveal technical liabilities that interviews and demonstrations can't surface.

Code audit areas: Code quality (complexity, duplication, test coverage, documentation), Security (vulnerability scanning, authentication patterns, data handling, OWASP compliance), Architecture (coupling, cohesion, scalability, single points of failure), Dependencies (outdated packages, unmaintained libraries, license risks), and Technical debt (debt density, debt distribution, debt growth rate).

Automated tools: SonarQube (quality), Snyk/Dependabot (security), CodeClimate (maintainability). Human review is essential for: architectural assessment, business logic correctness, and security threat modeling.

Why It Matters

Code audits reveal the gap between "it works" and "it's maintainable." A product demo can look polished while the underlying code is unmaintainable spaghetti approaching technical insolvency.

Frequently Asked Questions

What does a code audit cover?

Code quality (complexity, tests, docs), security (vulnerabilities, auth, data handling), architecture (coupling, scalability), dependencies (outdated, unmaintained, license risks), and technical debt density.

How much does a code audit cost?

Automated scans: $5-15K. Expert human review (1-2 weeks): $15-50K. Full forensic audit with business risk assessment: $50-100K+. The cost is often < 1% of deal value — cheap insurance.

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Need Expert Help?

Richard Ewing is a Product Economist and AI Capital Auditor. He helps companies translate technical complexity into financial clarity.

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