The reason for a post-audit is to ____.
A) help financial managers reduce errors in cash flow estimation
B) reduce the number of accepted risky projects
C) reduce the number of projects submitted
D) determine the correct required rate of return

Question

Quizplus · Accepted Answer

A post-audit is conducted to review the accuracy of cash flow estimates made during the capital budgeting process. This helps financial managers identify and correct errors in cash flow estimation, which in turn can improve future capital budgeting decisions. Options B and C are not accurate and D is not the primary purpose of a post-audit.

The Reason for a Post-Audit Is to ____