A post-audit is an evaluation of actual performance against projections made in the project proposal, after the completion of a project. Option A refers to pre-audit, option B may create incentives for managers to manipulate projections, and option D refers to a portfolio review.

Solved

A Post-Audit

Question 43

Multiple Choice

A post-audit

A) should be performed as an evaluation of an organization's investment projects before their completion.
B) creates an incentive for managers to make lower estimates, since managers know that their results will be evaluated.
C) is an evaluation of how well a project's actual performance matches the projections made when the project was proposed.
D) provides an informal mechanism for deciding whether existing projects should be supported or terminated.

Correct Answer: