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

A management auditor compares a company's intended image, as stated in its vision documents, with the image actually perceived by stakeholders in a survey and finds a large difference. What is this difference commonly called, and what should the auditor primarily examine?

It is an image gap, the difference between the image the company projects and the image stakeholders perceive. The auditor should examine the communication, conduct and performance causing the mismatch, rather than sampling risk, goodwill accounting or cost variances.

  1. AImage gap; the communication and conduct that cause the mismatch between projected and perceived imageCorrect
  2. BAudit risk; the sampling method used by the auditor
  3. CGoodwill write-off; the amortisation period
  4. DCost variance; the standard cost sheet

Explanation

The difference between desired or projected image and perceived image is an image gap. The auditor should trace its causes in communication, behaviour and performance. The other options relate to sampling risk, accounting or costing, not image evaluation.

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