Question

Select the incorrect statement regarding postaudits of capital investment decisions. Multiple Choice A postaudit should be conducted at the end of the project. The postaudit helps management determine whether a project that had been accepted should have been rejected.

Answer 1

Answer:

A post audit is only necessary for a capital investement selected using a technique that does not consider the time value of money

Explanation:

A post audit defines the analysis of an outcome with respect to the capital budgeting investment. It is to be conducted at the closing of the period. Also it measures whether the project should be accepted or rejected via details assumption analysis but also it considered the times value of the money

Therefore the above statement should be considered

And, hence, the other options should be considered as wrong