Which of the Following Statements Is True of a Post-Investment

Multiple Choice

Which of the following statements is true of a post-investment audit?

A) It encourages managers to overstate the expected cash inflows from projects and accept projects they should reject.
B) It helps managers avoid optimistic estimate errors.
C) It does not help senior management to recognize problems in the implementation of the project.
D) It provides managers with feedback about the performance of a project to determine if any variance from expectations were the result of the overly optimistic estimates of because of implementation issues.