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

Which action by a company is most likely to strengthen its corporate image through good corporate governance, as would be noted by a management auditor?

Timely and transparent disclosure of financial and non-financial information strengthens corporate image. It builds credibility and trust among investors, regulators and the public, whereas delaying disclosures, restricting information to promoters or avoiding grievance mechanisms indicates weak governance and damages reputation.

  1. ADelaying disclosures to avoid market reaction
  2. BTimely, transparent disclosure of financial and non-financial information to stakeholdersCorrect
  3. CRestricting information to promoters only
  4. DAvoiding grievance redressal mechanisms

Explanation

Transparency and timely disclosure build credibility and trust with investors, regulators and the public, which strengthens image. Delaying disclosures, restricting information or avoiding grievance mechanisms signal poor governance and weaken reputation.

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