A Post-Completion Audit of Investment Projects Is Important Because

question 21

Multiple Choice

A post-completion audit of investment projects is important because:

• A)wasted expenditure may be avoided if internal control systems are in place.
• B)approval of an investment proposal is required before expenditure can take place.
• C)accountants need to understand the capital expenditure process when auditing it.
• D)it provides valuable information to enable implementation of improvements in the project's operating performance.

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Definitions:

Situation

A situation encompasses the immediate physical and social setting in which people find themselves and in which they engage in behavior and make interpretations about what is happening around them.

Social Institution

An organized pattern of beliefs and behaviors centered on basic social needs, such as government, education, and family.

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Social Exchange Theory

A psychological and sociological theory that explains social change and stability as a process of negotiated exchanges between parties.