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

A management auditor wants an objective indicator of how a manufacturing company is perceived by its customers after a product recall. Which evidence would be MOST direct for evaluating this aspect of corporate image?

Customer satisfaction survey scores and complaint-resolution statistics, compared before and after the recall, are the most direct evidence. They measure what customers actually think of the company, while depreciation trends, board meeting counts or inventory valuation methods say nothing about customer perception.

  1. ATrend in the company's depreciation charge
  2. BCustomer satisfaction survey scores and complaint-resolution statistics before and after the recallCorrect
  3. CNumber of board meetings held during the year
  4. DChange in the closing stock valuation method

Explanation

Customer perception is measured directly through surveys, complaint data, repeat-purchase and brand-recall measures. Depreciation, board meeting count and stock valuation method relate to accounting or governance matters and do not reflect how customers view the firm. Comparing pre- and post-recall data shows the image effect.

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