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: 8)

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

  1. Only people external to the company who have purchased something from the company.
  2. Only people internal to the company who directly use its product.
  3. Anyone external to the company and those internal who rely on its product to get their job done.
  4. 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 principles of total quality management (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.



Which statement best describes the emphasis of total quality management (TQM)?

  1. Reducing the cost of inspection.
  2. Implementing better statistical quality control techniques.
  3. Doing each job right the first time.
  4. Encouraging cross-functional teamwork.

Answer(s): C

Explanation:

The basic principles of TQM include (1) doing each job right the first time, (2) being customer oriented, (3) committing the organizational culture to continuous improvement, and (4) building teamwork and employee empowerment.



The use of teams in total quality management (TQM) is important because:

  1. Well-managed teams can be highly creative and are able to address complex problems better than individuals can.
  2. Teams are quicker to make decisions, thereby helping to reduce cycle time.
  3. Employee motivation is higher for team members than for individual contributors.
  4. The use of teams eliminates the need for supervision, thereby allowing a company to become leaner and more profitable.

Answer(s): 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.



Which statement best describes total quality management (TQM)?

  1. TQM emphasizes reducing the cost of inspection.
  2. TQM emphasizes better statistical quality control techniques.
  3. TQM emphasizes doing each job right the first time.
  4. TQM emphasizes encouraging cross-functional teamwork.

Answer(s): 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, product service 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.



Which of the following is not true about the advantages of adopting ISO 9000 standards?

  1. Adoption of ISO 9000 standards may allow an entity to sell products in foreign markets.
  2. ISO registration makes customers more comfortable with the supplier's products and services.
  3. ISO 9000 allows entities to understand who internal customers and users are without sharing private information.
  4. ISO registration may help entities discover internal process and quality improvements.

Answer(s): C

Explanation:

Market pressure is usually the primary reason that entities adopt ISO 9000 standards. However, many entities that register make internal process and quality improvement as a result. ISO 9000 forces entities to share information, which leads to a better understanding of who internal customers and users are.



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