An Enhanced Due Diligence (EDD) checklist is an important tool for any business to help ensure that potential risks and liabilities are identified and addressed. This type of checklist allows businesses to investigate their customers and suppliers, as well as other parties associated with a transaction or partnership, to weed out any potential issues that could have negative effects on the company. By properly assessing all parties involved in a transaction, companies can avoid legal or financial problems that could have been avoided had such a checklist been employed.