Asked by Keondre Argyle on Jun 06, 2024
Verified
A post audit of an investment project can provide feedback as to the quality of an entity's capital budgeting process.
Post Audit
A review conducted after the completion of a project or period to evaluate its compliance with projected outcomes and objectives.
Capital Budgeting
It is the process of evaluating and selecting long-term investments that are in line with the goal of shareholders' wealth maximization.
- Absorb the basic theories of capital budgeting and the variety of techniques used in the assessment of investment projects.
- Recognize the importance of post-audit in capital budgeting and how it can provide feedback on the investment's performance.
Verified Answer
AC
Aryahna ConverseJun 08, 2024
Final Answer :
True
Explanation :
A post audit can provide feedback on whether the actual results of the project align with the projected results used in the capital budgeting process, and therefore can inform improvements to the process.
Learning Objectives
- Absorb the basic theories of capital budgeting and the variety of techniques used in the assessment of investment projects.
- Recognize the importance of post-audit in capital budgeting and how it can provide feedback on the investment's performance.