Which of the Following Is a Disadvantage of Postaudits

question 37

Multiple Choice

Which of the following is a disadvantage of postaudits?

• A) They evaluate profitability rather than cash flows.
• B) They may point to the need for additional funding for the project.
• C) They tend to hold managers accountable for capital investment decision making.
• D) The assumptions driving the original analysis may be invalidated by changes in the actual operating environment.
• E) All of these.

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