IIA Certified Internal Auditor - Part 3, Business Analysis and Information Technology IIA-CIA-Part3 Dumps in PDF

Free IIA IIA-CIA-Part3 Real Questions (page: 6)

Statistical quality control often involves the use of control charts whose basic purpose is to:

  1. Determine when accounting control procedures are not working.
  2. Control labor costs in production operations.
  3. Detect performance trends away from normal operations.
  4. Monitor internal control applications of information technology.

Answer(s): C

Explanation:

Statistical control charts are graphic aids for monitoring the status of any process subject to random variations. The chart consists of three horizontal lines plotted on a horizontal time scale. The vertical scale represents the appropriate quantitative measure. The center line represents the average range or overall mean for the process being controlled. The other two lines are the upper control limit and the lower control limit. The processes are measured periodically, and the values are plotted on the chart. If the value falls within the control limits, no action is taken. If the value falls outside the limits, the process is considered "out of control," and an investigation is made for possible corrective action. Another advantage of the chart is that it makes trends visible.



The management and employees of a large household goods moving company decided to adopt total quality management (TQM) and continuous improvement (CI). The company believes that if it became nationally known as adhering to TQM and CI, one result would be an increase in the company's profits and market share.
The primary reason for adopting TQM was to achieve

  1. Greater customer satisfaction.
  2. Reduced delivery time.
  3. Reduced delivery charges.
  4. Greater employee participation.

Answer(s): A

Explanation:

TQM is an integrated system that anticipates, meets, and exceeds customers' needs, wants, and expectations.



Under a total quality management (TQM) approach,

  1. Measurement occurs throughout the process, and errors are caught and corrected at the source.
  2. Quality control is performed by highly trained inspectors at the end of the production process.
  3. Upper management assumes the primary responsibility for the quality of the products and services.
  4. A large number of suppliers are used in order to obtain the lowest possible prices.

Answer(s): A

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.



Which of the following is a characteristic of total quality management (TQM)?

  1. Management by objectives.
  2. On-the-job training by other workers.
  3. Quality by final inspection.
  4. Education and self-improvement.

Answer(s): 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.



In which of the following organizational structures does total quality management (TQM) work best?

  1. Hierarchal.
  2. Teams of people from the same specialty.
  3. Teams of people from different specialties.
  4. Specialists working individually.

Answer(s): 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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