Conducting a Post Audit: Objectives and Benefits

Objectives of Conducting a Post Audit

Prev Question Next Question

Question

Which of the following are objectives of conducting a post audit? Choose the best answer.

I. Identifying arbitrage opportunities

II. Improving forecasts -

III. Identifying expansion opportunities

IV. Improve operations -

V. Adhering to governmental guidelines for performance presentation

Answers

A. I, II, V

B. I, II, III, IV

C. I, II, VII

D. II, IV

E. I, II, III, IV, V

F. I, III, IV

Show Answer

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E. F.

The post-audit is an important aspect of the capital budgeting process, and involves two steps. Specifically, the post audit involves comparing actual results with forecasted results and determining why any differences exist. There are numerous specific reasons why companies conduct post-audits, but these reasons can be assimilated into two main objectives. Specifically, the objectives of the postaudit are to improve forecasting capacity and improve operations.

Prev Question Next Question