CIA-III Exam Questions and Answers | Exam-Dumps (Page: 7)

QUESTION: 31 Exam Topic: 1, Volume A

Focusing on customers, promoting innovation, learning new philosophies, driving out fear, and providing extensive training are all elements of a major change in organizations. These elements are aimed primarily at:

Copying leading organizations to better compete with them.
Focusing on the total quality of products and services.
Being efficient and effective at the same time, in order to indirectly affect profits.
Managing costs of products and services better, in order to become the low-cost provider.

Answer(s): B

Explanation:

TQM 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. TQM is the continuous pursuit of quality in every aspect of organizational activities through (1) a philosophy of doing it right the first time; (2) employee training and empowerment; (3) promotion of teamwork; (4) improvement of processes; and (5) attention to satisfaction of customers, both internal and external. TQM emphasizes the supplier's relationship with the customer, identifies customer needs, and recognizes that everyone in a process is at some time a customer or supplier of someone else, either inside or outside of the organization.

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QUESTION: 32 Exam Topic: 1, Volume A

Total quality management (TQM) in a manufacturing environment is best exemplified by:

Identifying and reworking production defects before sale.
Designing the product to minimize defects.
Performing inspections to isolate defects as early as possible.
Making machine adjustments periodically to reduce defects.

Answer(s): B

Explanation:

TQM emphasizes quality as a basic organizational function. TQM is the continuous pursuit of quality in every aspect of organizational activities. One of the basic principles of TQM is doing it right the first time. Thus, errors should be caught and corrected at the source, and quality should be built in (designed in) from the start.

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QUESTION: 33 Exam Topic: 1, Volume A

One of the main reasons that implementation of a total quality management (TQM) program works better through the use of teams is:

Teams are more efficient and help an organization reduce its staffing.
Employee motivation is always higher for team members than for individual contributors.
Teams are a natural vehicle for sharing ideas, which leads to process improvement.
The use of teams eliminates the need for supervision, thereby allowing a company to reduce staffing.

Answer(s): C

Explanation:

TQM promotes teamwork by modifying or eliminating traditional (and rigid) vertical hierarchies and instead forming flexible groups of specialists. Quality circles, cross-functional teams, and self- managed teams are typical formats. Teams are an excellent means of encouraging the sharing of ideas and removing process improvement obstacles.

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QUESTION: 34 Exam Topic: 1, Volume A

Which of the following is a key to successful total quality management (TQM)?

Training quality inspectors.
Focusing intensely on the customer.
Creating appropriate hierarchies to increase efficiency.
Establishing a well-defined quality standard, then focusing on meeting it.

Answer(s): B

Explanation:

TQM emphasizes satisfaction of customers, both internal and external. TQM considers the supplier's relationship with the customer, identifies customer needs, and recognizes that everyone in a process is at some time a customer or supplier of someone else, either inside or outside of the organization. Thus, TQM begins with external customer requirements, identifies internal customer- supplier relationships and requirements, and establishes requirements for external suppliers.

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QUESTION: 35 Exam Topic: 1, Volume A

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

The cumulative improvement from a company's TQM 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:

TQM 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 TQM affects every aspect of the organization's activities, it is part of 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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Financial CIA-III Exam (page: 7) Financial The Certified Internal Auditor Part 3 Updated on: 15-Feb-2026

QUESTION: 31 Exam Topic: 1, Volume A

Explanation:

QUESTION: 32 Exam Topic: 1, Volume A

Explanation:

QUESTION: 33 Exam Topic: 1, Volume A

Explanation:

QUESTION: 34 Exam Topic: 1, Volume A

Explanation:

QUESTION: 35 Exam Topic: 1, Volume A

Explanation:

Financial CIA-III Exam (page: 7)
Financial The Certified Internal Auditor Part 3
Updated on: 15-Feb-2026