Which of the following statements about postaudits is correct?

Question

Quizplus · Accepted Answer

The postaudit of a capital investment project should be made using the same analytical technique that was used in deciding to make the investment. This ensures consistency and accuracy in evaluating the investment's performance. A postaudit is typically conducted after the investment has been completed, and its purpose is to evaluate whether the expected benefits were actually realized and to identify any areas for improvement or learning for future investments. The use of expected cash flows and cost of capital may be part of the postaudit analysis, but it is not the defining characteristic of the process. Cost-volume-profit analysis is also not directly related to postaudits.

Which of the Following Statements About Postaudits Is Correct