- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 5. Capital Investments and Capital Allocation
- Subject 3. Capital Allocation Principles and Pitfalls
CFA Practice Question
The post-audit process is intended to ______
II. explain why actual results differ from forecasts.
III. improve subsequent forecasts.
I. compare actual results to forecasts.
II. explain why actual results differ from forecasts.
III. improve subsequent forecasts.
Correct Answer: I, II and III
The capital allocation post-audit process involves (1) comparison of actual results to forecast results, and (2) explanation of why the two differ. The purpose of the post-audit process is improving the accuracy of capital allocation forecasts by adopting improved forecasting methods.
User Contributed Comments 4
| User | Comment |
|---|---|
| davidkhang | Tricky... tricky... |
| Inaganti6 | If this is tricky wait till you get to the ethics section. |
| guest | 1. definition 2. definition 3. benefit |
| MathLoser | You call this tricky? |