CMA Final · Cost and Management Audit · Evaluation of Corporate Image
Which of the following is a limitation the management auditor should keep in mind when evaluating corporate image?
Image is built on perceptions, so its measurement is subjective and may change quickly with events. It cannot be captured precisely by one ratio, it does affect stakeholder behaviour, and it differs among stakeholder groups.
- AImage can be measured with absolute precision using a single ratio
- BImage is based on perceptions, so measurement is subjective and can change quicklyCorrect
- CImage has no link with stakeholder behaviour
- DImage is the same for all stakeholders at all times
Explanation
Because image rests on perceptions, it is subjective and may shift with events, so findings are indicative rather than exact. No single ratio captures it, it influences stakeholder behaviour, and it varies across groups.
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