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CMA Final · Cost and Management Audit · Evaluation of Corporate Image

A management auditor assessing corporate image finds that a firm has a strong reputation among customers for product quality but poor standing with employees because of repeated delayed wage payments. What is the most appropriate conclusion in the audit report?

The report should state that image differs by stakeholder and flag the employee weakness with recommendations. Customer satisfaction does not offset poor employee standing, and the finding is not uniformly good or bad, nor outside the management auditor's scope.

  1. ACorporate image is uniformly strong because customers are the only stakeholder that matters
  2. BCorporate image is uniformly weak because one group is dissatisfied
  3. CImage is stakeholder-specific, so the report should flag the employee-related weakness and recommend corrective actionCorrect
  4. DNo comment is needed because wage matters belong only to the financial audit

Explanation

Corporate image is multi-dimensional and varies across stakeholder groups. The auditor should report the gap with employees and recommend action. Treating customers alone as decisive or ignoring the issue would miss the weakness, and generalising to uniformly weak overstates it.

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