In earlier article we saw the importance of capital investment decisions. As these decisions made relate to several years and can erode or increase shareholder value, it's important to periodically do post-audit of such capital investment decisions.
Some of the objectives of performing post audit on capital investment decisions are:
- To ensure that the capital spending does not exceed the amount authorized;
- To ensure that the anticipated benefits are eventually obtained and
- That implementation of the project is not being delayed.
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