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

In a management audit, evaluation of a company's corporate image is chiefly concerned with which of the following?

Corporate image evaluation looks at how stakeholders such as customers, investors, employees and the public perceive the organisation. It is a management audit concern about reputation and standing, unlike ledger accuracy, cost record compliance or unit costing, which belong to financial and cost audit.

  1. AThe perception that stakeholders such as customers, investors, employees and the public hold about the organisationCorrect
  2. BThe arithmetic accuracy of the ledger balances at the year end
  3. CThe statutory compliance of the cost records with prescribed rules only
  4. DThe calculation of the cost of production per unit of output

Explanation

Corporate image is the overall impression of the organisation held by its stakeholders. A management auditor evaluates it as part of assessing how well management builds and protects reputation. Ledger accuracy, cost record compliance and unit costing are matters of financial or cost audit, not image evaluation.

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