CMA Final · Cost and Management Audit · Evaluation of Corporate Image
A management auditor wants to evaluate the image of a manufacturing company among its dealers and end customers. Which method gives the most direct evidence of how these external groups perceive the company?
Structured perception surveys and interviews with dealers and customers give the most direct evidence, because corporate image is how external stakeholders see the company. Management's own reports are self-assessment, and cost or depreciation reviews do not measure stakeholder perception at all.
- AReviewing the company's own annual report for statements about its reputation
- BComparing the company's depreciation policy with that of peers
- CConducting structured perception surveys and interviews with dealers and customersCorrect
- DRecomputing the cost of production from the cost records
Explanation
Image is perception, so the best evidence comes directly from those who hold the perception. Surveys and interviews capture this. The annual report is management's own claim, and the cost recomputation and depreciation comparison concern financial matters rather than perception.
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