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

During evaluation of corporate image, the management auditor finds that the company has strong brand recall among customers but frequent complaints from vendors about delayed payments and from employees about high attrition. What is the most appropriate audit conclusion?

The auditor should conclude that corporate image is uneven across stakeholder groups and recommend improving vendor and employee relations. Strong customer brand recall does not offset vendor and employee dissatisfaction, because image depends on all stakeholders and neglecting any group can erode reputation over time.

  1. ACorporate image is uneven across stakeholder groups, and management should be advised to address vendor and employee relations to protect overall reputationCorrect
  2. BCorporate image is fully satisfactory because brand recall is high
  3. CCorporate image cannot be assessed because only customers matter
  4. DCorporate image is irrelevant to management audit once sales are growing

Explanation

Image is multi-stakeholder. High brand recall shows strength with customers, but vendor and employee dissatisfaction are weaknesses that can erode reputation over time. The auditor should report the imbalance and recommend corrective action rather than rely on one group's view.

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