CIA-III Exam dumps PDF | Exam-Dumps (Page: 37)

QUESTION: 181 Exam Topic: 1, Volume A

One of the main reasons total quality management TOM) can be used as a strategic weapon is that:

The cumulative improvement from a company's 'QM efforts cannot readily be copied by competitors.
Introducing new products can lure customers away from competitors.
Reduced costs associated with better quality can support higher shareholder dividends.
TQM provides a comprehensive planning process for a business.

Answer(s): A

Explanation:

TON is a comprehensive approach to quality. It treats the pursuit of quality as a basic organizational function that is as important as production or marketing. Because 'QM affects every, aspect of the organization's activities, it permeates the organizational culture. Thus, the cumulative effect of TQM's continuous improvement process can attract and hold customers and cannot be duplicated by competitors.

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QUESTION: 182 Exam Topic: 1, Volume A

Quality control circles are now used all over the world. The circles typically consist of a group of five to ten employees who meet regularly. The primary goal of these circles is:

To improve the quality of leadership in the organization.
To tap the creative problem-solving potential of every employee.
To improve communications between employees and managers by providing a formal communication channel.
To allow for the emergence of team leaders who can be targeted for further leadership development.

Answer(s): B

Explanation:

Quality control circles are used to obtain voluntary input from employees to promote problem solving. Potential benefits include lower costs, better employer-employee relations, and greater employee commitment.

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QUESTION: 183 Exam Topic: 1, Volume A

Which of the following observations concerning quality control is most accurate?

Process quality control is used when examining the quality of goads or services that already exist.
Process quality control is used to prevent defects, and product quality control is used primarily to identify defects after the fact.
Product quality control is designed to balance the marketability of higher quality against the cast of attaining higher quality.
Product quality control is more important than process quality control.

Answer(s): B

Explanation:

Process quality is the effectiveness and efficiency of the organization's internal operations. Product quality is the conformance of the organization's output with customer expectations.

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QUESTION: 184 Exam Topic: 1, Volume A

If a company is customer-centered, its customers are defined as:

Only people external to the company who have purchased something from the company.
Only people internal to the company who directly use its product.
Anyone external to the company and those internal who rely an its product to get their jab done.
Everybody external to the company who is currently doing, or may in the future do, business with the company.

Answer(s): C

Explanation:

One of the tenets of TQM is customer orientation, whether the customer is internal or external. An internal customer is a member of the organization who relies on another member's work to accomplish his/her task.

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QUESTION: 185 Exam Topic: 1, Volume A

A company, which has many branch stares, has decided to use its best-performing stare as a benchmark organization far the purpose of analyzing the accuracy and reliability of branch stare financial reporting.
Which one of the fallowing is the most likely measure to be included in a financial benchmark?

High turnover of employees.
High level of employee participation in setting budgets.
High amount of bad debt write-offs. IT
High number of suppliers.

Answer(s): C

Explanation:

Internal benchmarking is the application of best practices in one part of the organization e.g., a high-performing branch store) to its other parts other branches). This process requires, among other things, use of quantitative and qualitative measures. A key indicator financial performance measurement is the amount of bad debt write-offs. A high level of bad debt write-offs could indicate fraud, which would compromise the accuracy and reliability of financial reports. Bad debt write-offs may result-Fr-am recording fictitious sales.

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Financial CIA-III Exam (page: 37) Financial The Certified Internal Auditor Part 3 Updated on: 16-Feb-2026

QUESTION: 181 Exam Topic: 1, Volume A

Explanation:

QUESTION: 182 Exam Topic: 1, Volume A

Explanation:

QUESTION: 183 Exam Topic: 1, Volume A

Explanation:

QUESTION: 184 Exam Topic: 1, Volume A

Explanation:

QUESTION: 185 Exam Topic: 1, Volume A

Explanation:

Financial CIA-III Exam (page: 37)
Financial The Certified Internal Auditor Part 3
Updated on: 16-Feb-2026