Explaining the Non-Adoption of Post-Completion Auditing
This field study examines reasons for the non-adoption of post-completion auditing (PCA) of capital investments. The empirical evidence is based primarily on interviews conducted in the 30 largest Finnish manufacturing companies. PCA can be briefly described as a formal process that checks the outcomes of individual investment projects after the initial investment is completed and the project is operational. Management Control Systems and PCA literatures suggest that different control systems can act as alternatives for each other. This paper specifically analyzes and maps alternate capital investment controls (ACICs) that enable the achievement of benefits suggested for PCA and draws upon the equifinality concept to discuss the role of ACICs in discouraging PCA adoption. The findings suggest that ACICs do exist, and, therefore, PCA non-adopters do not necessarily jeopardize successful capital investments. The ACICs identified in this study included formal and informal systems and procedures for performance measurement (e.g. following up production key figures, sales and profit centers) and organizational learning (e.g. utilizing central expertise and experienced internal resources). Furthermore, the empirical evidence from this study suggests that smaller companies with fewer major strategic, complex and repetitive capital investments can perceive ACICs to be sufficient, and discourage the adoption of formal PCA.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 16 (2007)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REAR20 |
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REAR20|
When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:16:y:2007:i:2:p:363-398. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.