According to our case study, ATC 10-5; Gaines Company has begun a post audit program. The purpose of a post audit program is to provide motivation to managers to more efficiently analyze capital investment proposals which directly affect their company’s future financial strength (Olds, Edmonds & Tsay, 2008). Currently, managers can directly affect the rate of return of projects due to the current bonus system. Our case study tells us that Victor Holt altered an investment proposal as it would benefit him to make a reduction. Unscrupulous employees can alter business transactions that are financially beneficial for themselves but do not bring the best interests of the company to heart. A good post audit policy and audit process can provide both
