Total quality management differs from traditional performance measurement in that it:
A. has an external, rather than an internal, focus.
B. is a top-down review process.
C. assesses both individual performance and the system within which the individual works.
D. focuses exclusively on support decisions about work assignments, training, and compensation.
E. provides only subjective feedback based on the work process.
Answer: C. assesses both individual performance and the system within which the individual works.
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Indicate whether the statement is true or false
Which of the following is a condition which would not create a conducive situation for a client to take a physical inventory at an interim date before year end?
a. The control risk over inventory is high. b. The auditor will be able to review material transactions in the roll-forward period. c. The auditor can effectively test the year-end balance through a combination of analytical procedures and selective testing of transactions between the physical count and the year-end. d. The auditor reviews the intervening transactions for evidence of any manipulation or unusual activity.