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Certified Internal Auditor Exam Questions 501–505 (page: 102)

Updated On: 9-Feb-2026

Under a total quality management TOM) 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:

Total quality management emphasizes quality as a basic organizational function. TOM is the continuous pursuit of quality in every aspect of organizational activities. One of the basic tenets of TOM 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. Qn-the-job training by other workers.
  3. Quality by final inspection.
  4. Education and self-improvement.

Answer(s): D

Explanation:

According to management theorist VV). Edwards Deming's well-known 14 points. education and self-improvement are essential. Knowledge is opportunity. Hence. continuous improvement should be everyone's primary career objective.



In which of the following organizational structures does total quality management TOM) 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:

TOM 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 have proper training, necessary information, and the best tools; be fully engaged in the decision process; and receive fair compensation. If such empowered employees are assembled in teams of individuals with the required skills, TOM theorists believe they will be more effective than people performing their tasks separately in a rigid structure.



The most important component of quality control is

  1. Ensuring goods and services conform to the design specifications.
  2. Satisfying upper management.
  3. Conforming with ISO-9000 specifications.
  4. Determining the appropriate timing of inspections.

Answer(s): A

Explanation:

The intent of quality control is to ensure that goods and services conform to the design specifications. Whether the focus is on feedforward, feedback, or concurrent control, the emphasis is on ensuring product or service conformity.



The cost of scrap, rework, and tooling changes in a product quality cost system is categorized as a n)

  1. Training cost.
  2. External failure cost.
  3. Internal failure cost.
  4. Prevention cost.

Answer(s): C

Explanation:

Internal failure costs are incurred when detection of defective products occurs before shipment. Examples of internal failure costs are scrap, rework, tooling changes, and downtime.



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