- CFA Exams
- 2021 CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 32. Capital Budgeting
- Subject 1. Capital Budgeting: Introduction
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 budgeting 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 budgeting 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? |