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Certified Internal Auditor Exam Questions 521–525 (page: 106)

Updated On: 9-Feb-2026

Which of the following criteria would be most useful to a sales department manager in evaluating the performance of the manager's customer-service group?

  1. The customer is always right.
  2. Customer complaints should be processed promptly.
  3. Employees should maintain a positive attitude when dealing with customers.
  4. All customer inquiries should be answered within 7 days of receipt.

Answer(s): D

Explanation:

A criterion that requires all customer inquiries to be answered within 7 days of receipt permits accurate measurement of performance. The quantitative and specific nature of the appraisal using this standard avoids the vagueness, subjectivity, and personal bias that may afflict other forms of personnel evaluations.



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

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

Answer(s): B

Explanation:

TOM 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. TOM is the continuous pursuit of quality in every aspect of organizational activities through a philosophy of doing it right the first time, employee training and empowerment, promotion of teamwork, improvement of processes, and attention to satisfaction of customers, both internal and external. TOM 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.



Total quality management in a manufacturing environment is best exemplified by

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

Answer(s): B

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, and quality should be built in designed in) from the start.



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

  1. Teams are more efficient and help an organization reduce its staffing.
  2. Employee motivation is always higher for team members than for individual contributors.
  3. Teams are a natural vehicle for sharing ideas, which leads to process improvement.
  4. 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. Duality circles, cross- functional teams, and self managed teams are typical formats. Teams are an excellent vehicle for encouraging the sharing of ideas and removing process improvement obstacles. Listed below are costs of quality that a plans to prepare a report that classifies costs, internal failure costs, and extern



The costs of quality that are incurred in detecting units of product that do not conform to product specifications are referred to as

  1. Preventive costs.
  2. Appraisal costs.
  3. Internal failure costs.
  4. External failure costs.

Answer(s): B

Explanation:

The Categories of quality costs include conformance costs (prevention and appraisal) and nonconformance costs(internal failure and external failure).appraisal costs embrace such activities as statistical quality control programs.inspection, and testing.thus, the cost of detecting nonconfoming products is an appraisal cost.listed below are costs of quality that a manufacturing company has incurred throughout its operations.the company plans to prepare a report that classified these costs into the following four categories:preventive costs, appraisal costs, internal failure costs, and external failure costs.



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