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| Author: | Huikku, J. |
| Title: | Managerial uses of post-completion auditing of capital investments |
| Journal: | Liiketaloudellinen aikakauskirja
2008 : 2, p. 139-164 |
| Index terms: | management accounting auditing capital investment companies Finland Nordic countries |
| Language: | eng |
| Abstract: | This study explores the different managerial uses of post-completion auditing (PCA) of capital investments (hereafter as: invt./invts.) Drawing on the concepts of cybernetic control systems, this study assesses the significance of PCA in measuring performance and controlling current invts., enhancing the integrity of invt. appraisals, and in evaluating personnel. The major perceived benefits from PCA are reported to be related to organizational learning (OL). Nevertheless, the practical OL benefits of PCA are still ambiguous. Consequently, this paper also elaborates and maps them and discusses the extent to which they are related to the single/double-loop type of learning. The empirical data come from the 16 PCA adopters identified in face-to-face interviews conducted in the 30 largest Finnish manufacturing companies. The findings of the study suggest that in addition to inherently inappropriate timing, the alternate ("non-PCA") control mechanisms available to companies diminish the relevance of PCA in controlling current invt., and in enhancing the integrity of invt. appraisals etc. |
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