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IIA-CIA-Part3 Exam Answers - Iia New Business Knowledge For Internal Auditing Test Notes - Royalholidayclubbed
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IIA-CIA-Part3 PDF DEMO:
QUESTION NO: 1
Which statement best describes total quality management (TQM)?
A. TQM emphasizes reducing the cost of inspection.
B. TQM emphasizes better statistical quality control techniques.
C. TQM emphasizes doing each job right the first time.
D. TQM emphasizes encouraging cross-functional teamwork.
Answer: C
Explanation:
TQM establishes quality as an organizational objective and views it as a major component of the organization's service to its customers. It emphasizes employee training and commitment, productservice design and production, and customer service. Ordinarily, the quality of a product or service is as important to customers as cost and timeliness. Superior product quality is not merely the result of more inspection, better statistical quality control, and cross-functional teamwork.
Manufactures must make fundamental changes in the way they produce products and do each job right the first time.
QUESTION NO: 2
Which of the following is a characteristic of total quality management (TQM)?
A. Management by objectives.
B. On-the-job training by other workers.
C. Quality by final inspection.
D. Education and self-improvement.
Answer: D
Explanation:
TQM is the continuous pursuit of quality in every aspect of organizational activities. One of the means of achieving this is through employee training and empowerment.
QUESTION NO: 3
The use of teams in total quality management (TQM) is important because:
A. Well-managed teams can be highly creative and are able to address complex problems better than individuals can.
B. Teams are quicker to make decisions, thereby helping to reduce cycle time.
C. Employee motivation is higher for team members than for individual contributors.
D. The use of teams eliminates the need for supervision, thereby allowing a company to become leaner and more profitable.
Answer: A
Explanation:
Teams can use the diverse knowledge and skills of all team members. Employee involvement means training and empowering employees to harness their creativity for problem solving. Quality control circles are used to obtain input from employees and to locate the best perspective on problem solving.
QUESTION NO: 4
Which of the following is not required by ISO 9000 standards?
A. Establishment of a quality management system.
B. Creation of an internal audit system.
C. Consistent high quality products.
D. Onsite inspections by a registrar.
Answer: C
Explanation:
ISO 9000 is a set of generic standards for establishing and maintaining a quality system within an entity. The standards provide no basis forjudging the quality of the end product. The marketplace makes this determination. The objective of ISO 9000 standards is to ensure consistent quality.
QUESTION NO: 5
In which of the following organizational structures does total quality management (TQM) work best?
A. Hierarchal.
B. Teams of people from the same specialty.
C. Teams of people from different specialties.
D. Specialists working individually.
Answer: C
Explanation:
TQM advocates replacement of the traditional hierarchal structure with teams of people from different specialties. This change follows from TQM's emphasis on empowering employees and teamwork. Employees should (1) have proper training, necessary information, and the best tools;
(2) be fully engaged in the decision process; and (3) receive fair compensation. If such empowered employees are assembled in teams of individuals with the required skills, TQM theorists believe they will be more effective than people performing their tasks separately in a rigid structure.
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Updated: May 27, 2022
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