About Me
CPA
1 Regulation (REG)
1.1 Ethics, Professional Responsibilities, and Federal Tax Procedures
1.1 1 Professional ethics and responsibilities
1.1 2 Federal tax procedures and practices
1.1 3 Circular 230
1.2 Business Law
1.2 1 Legal rights, duties, and liabilities of entities
1.2 2 Contracts and sales
1.2 3 Property and bailments
1.2 4 Agency and employment
1.2 5 Business organizations
1.2 6 Bankruptcy
1.2 7 Secured transactions
1.3 Federal Taxation of Property Transactions
1.3 1 Basis determination and adjustments
1.3 2 Gains and losses from property transactions
1.3 3 Like-kind exchanges
1.3 4 Depreciation, amortization, and depletion
1.3 5 Installment sales
1.3 6 Capital gains and losses
1.3 7 Nontaxable exchanges
1.4 Federal Taxation of Individuals
1.4 1 Gross income inclusions and exclusions
1.4 2 Adjustments to income
1.4 3 Itemized deductions and standard deduction
1.4 4 Personal and dependency exemptions
1.4 5 Tax credits
1.4 6 Taxation of individuals with multiple jobs
1.4 7 Taxation of nonresident aliens
1.4 8 Alternative minimum tax
1.5 Federal Taxation of Entities
1.5 1 Taxation of C corporations
1.5 2 Taxation of S corporations
1.5 3 Taxation of partnerships
1.5 4 Taxation of trusts and estates
1.5 5 Taxation of international transactions
2 Financial Accounting and Reporting (FAR)
2.1 Conceptual Framework, Standard-Setting, and Financial Reporting
2.1 1 Financial reporting framework
2.1 2 Financial statement elements
2.1 3 Financial statement presentation
2.1 4 Accounting standards and standard-setting
2.2 Select Financial Statement Accounts
2.2 1 Revenue recognition
2.2 2 Inventory
2.2 3 Property, plant, and equipment
2.2 4 Intangible assets
2.2 5 Liabilities
2.2 6 Equity
2.2 7 Compensation and benefits
2.3 Specific Transactions, Events, and Disclosures
2.3 1 Leases
2.3 2 Income taxes
2.3 3 Pensions and other post-retirement benefits
2.3 4 Derivatives and hedging
2.3 5 Business combinations and consolidations
2.3 6 Foreign currency transactions and translations
2.3 7 Interim financial reporting
2.4 Governmental Accounting and Not-for-Profit Accounting
2.4 1 Governmental accounting principles
2.4 2 Governmental financial statements
2.4 3 Not-for-profit accounting principles
2.4 4 Not-for-profit financial statements
3 Auditing and Attestation (AUD)
3.1 Engagement Planning and Risk Assessment
3.1 1 Engagement acceptance and continuance
3.1 2 Understanding the entity and its environment
3.1 3 Risk assessment procedures
3.1 4 Internal control
3.2 Performing Audit Procedures and Evaluating Evidence
3.2 1 Audit evidence
3.2 2 Audit procedures
3.2 3 Analytical procedures
3.2 4 Substantive tests of transactions
3.2 5 Tests of details of balances
3.3 Reporting on Financial Statements
3.3 1 Audit report content
3.3 2 Types of audit reports
3.3 3 Other information in documents containing audited financial statements
3.4 Other Attestation and Assurance Engagements
3.4 1 Types of attestation engagements
3.4 2 Standards for attestation engagements
3.4 3 Reporting on attestation engagements
4 Business Environment and Concepts (BEC)
4.1 Corporate Governance
4.1 1 Internal controls and risk assessment
4.1 2 Code of conduct and ethics
4.1 3 Corporate governance frameworks
4.2 Economic Concepts
4.2 1 Microeconomics
4.2 2 Macroeconomics
4.2 3 Financial risk management
4.3 Financial Management
4.3 1 Capital budgeting
4.3 2 Cost measurement and allocation
4.3 3 Working capital management
4.3 4 Financial statement analysis
4.4 Information Technology
4.4 1 IT controls and security
4.4 2 Data analytics
4.4 3 Enterprise resource planning (ERP) systems
4.5 Operations Management
4.5 1 Strategic planning
4.5 2 Project management
4.5 3 Quality management
4.5 4 Supply chain management
4 5 3 Quality Management Explained

5 3 Quality Management Explained

Key Concepts

Quality Management Systems (QMS)

A Quality Management System (QMS) is a collection of business processes focused on consistently meeting customer requirements and enhancing their satisfaction. It is documented, systematically reviewed, and regularly updated to ensure continuous improvement.

Example: ISO 9001 is a widely recognized QMS standard that provides a framework for organizations to ensure they meet customer and regulatory requirements.

Total Quality Management (TQM)

Total Quality Management (TQM) is a management approach that focuses on the continuous improvement of all organizational processes. It involves all employees and emphasizes customer satisfaction, employee involvement, and a systematic approach to problem-solving.

Example: A manufacturing company implements TQM by involving all employees in identifying and solving quality issues, leading to reduced defects and increased customer satisfaction.

Six Sigma

Six Sigma is a data-driven approach and methodology for eliminating defects in any process. It aims to reduce variability and improve quality by focusing on process improvement and variation reduction. The term "Six Sigma" refers to the ability of processes to produce a very high percentage of output within specification.

Example: A call center uses Six Sigma to reduce the average call handling time by identifying and eliminating bottlenecks in the process, resulting in faster service and higher customer satisfaction.

Continuous Improvement

Continuous Improvement is an ongoing effort to improve products, services, or processes. It involves small, incremental changes and large-scale transformations to achieve better efficiency, quality, and customer satisfaction. The concept is often associated with the "Kaizen" philosophy in Japanese business.

Example: A retail store implements continuous improvement by regularly reviewing sales data, customer feedback, and operational metrics to identify areas for enhancement, such as improving inventory management or enhancing customer service.

Quality Control

Quality Control is a process through which an organization seeks to ensure that product quality is maintained or improved. It involves monitoring specific product results to determine if they comply with relevant standards and identifying ways to eliminate causes of unsatisfactory performance.

Example: A food production company uses quality control to regularly test products for contamination and ensure they meet safety and quality standards before they are shipped to customers.

Examples and Analogies

Consider a Quality Management System (QMS) as the "blueprint" for building a quality-focused organization. Just as a blueprint outlines the construction of a building, a QMS outlines the processes and procedures for maintaining quality.

Total Quality Management (TQM) is like a "team sport" where everyone plays a role. Just as a successful sports team requires coordination and effort from all players, TQM requires involvement and commitment from all employees.

Six Sigma is akin to "precision engineering." Just as engineers strive for minimal errors in their designs, Six Sigma aims for minimal defects in processes.

Continuous Improvement is similar to "fine-tuning a musical instrument." Just as musicians regularly adjust their instruments for optimal performance, organizations continuously refine their processes for better outcomes.

Quality Control is like "quality assurance checkpoints" in a production line. Just as checkpoints ensure that each stage of production meets standards, quality control ensures that products meet predefined quality criteria.

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