Question

what is a post audit? why is a post audit critical to good investment decision making?

Answer 1

Solution :-

Before describing Post Audit we would discuss little bit about Audit.

Audit is the systematic process of examination of the financial records to determine if they are accurate and in accordance with any applicable rules, regulations, and law.

The Post Audit is process in which performance of the project previously accepted is reviewed action taken if performance is below expectation. Post audit is it key element in capital budgeting performing.Post audit is important because a manager is more likely to submit a reasonable data when they make investment proposal as they know there estimation will be compared with actual performance. By comparing actual result with the predicated result, manager can improve both operation and the cash flow estimation process.Thus, post audit is important for good investment decision making as it improves the development of future investment proposal because manager improve their estimation techniques process by Evaluating there past success and failure.