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These services include the International Standards, the annual international conference, AuditChannel.tv and a wealth of global guidance for members.
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European Confederation of Institutes of Internal Auditing (ECIIA)
The European Confederation of Institutes of Internal Auditing (ECIIA) represents the internal auditing profession in Europe. ECIIA promotes internal auditing to organisations within the European Community, it publishes research and position papers and organises a successful annual conference.
NO.1 A company with many branch stores has decided to use its best-performing store as a
benchmark organization for the purpose of analyzing the accuracy and reliability of branch store
Which one of the following is the most likely measure to be included in a financial benchmark?
A. High level of employee participation in setting budgets.
B. High amount of bad debt write-offs.
C. High turnover of employees.
D. High number of suppliers.
Internal benchmarking is the application of best practices in one part of the organization (e.g., a
high-performing branch store) to its other parts (other branches). This process requires, among
other things, use of quantitative and qualitative measures. A key indicator for financial performance
measurement is the amount of bad debt write-offs. A high level of bad debt write-offs could
indicate fraud, which would compromise the accuracy and reliability of financial reports. Bad debt
write-offs may result from recording fictitious sales.
NO.2 In which of the following organizational structures does total quality management (TQM) work
A. Specialists working individually.
C. Teams of people from the same specialty.
D. Teams of people from different specialties.
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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