CMA Final · Cost and Management Audit · Evaluation of Corporate Image
During an evaluation of corporate image, an auditor finds that the company has strong sales growth but frequent customer complaints about delayed grievance resolution and several unresolved regulator notices. What is the most appropriate audit conclusion?
The image should be reported as at risk. Sales growth alone does not establish reputation, and delayed complaint handling together with unresolved regulator notices point to service and compliance weaknesses that can reduce customer and regulator trust over time.
- AImage is strong because sales growth outweighs every other factor
- BImage is not assessable because complaints are non-financial
- CImage is at risk, since poor responsiveness and compliance lapses can erode stakeholder trust despite growthCorrect
- DImage is unaffected because regulator notices only concern the legal department
Explanation
Image reflects trust across several stakeholders, not sales alone. Unresolved complaints and regulatory notices signal weaknesses in service and compliance that can damage reputation later. Hence the conclusion of image at risk is sound, and the other options ignore these factors.
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