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Budgeting & Forecasting › Capital Budgeting

How does post-audit (post-completion review) improve capital budgeting?

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Answer

A post-audit compares a project's actual outcomes against the appraisal forecasts after implementation. It improves accountability, reveals estimation biases (e.g., over-optimistic forecasts), provides lessons to improve future appraisals, and discourages padding of business cases. It closes the loop between decision and result.
Real-world example Reviewing a completed project shows its returns fell short, prompting more realistic future forecasts.

Common follow-ups: What biases can post-audit reveal? | How does it improve future appraisals?

Capital Budgeting Variance Analysis Capital Budgeting
All 34 Capital Budgeting questions