Birmingham, Fletcher A. (1986, ASQC) Goodyear Aerospace Corp., Akron, OH
Once a year America's corporations issue a report to their stockholders on the financial position of the company. The Annual Report as it is called, is more than a gesture of goodwill toward the interested investor. Its manifestation can be linked to the regulations of the Securities Exchange Commission. Upon receipt of the Annual Report, the reader's attention is immediately focused upon the auditor's opinion. The word of the auditor are so powerful that the comment; "WITH QUALIFICATION", can result in a company's stock and bond prices plummeting on a downward spiral.
Poor product quality affects more than the consumers financial security. It also affects health and safety. Ironically, an annual report is not required for the quality of a company's products. However, the financial audit does have its parallel activity in Quality Assurance. The Quality Audit is an essential element of a Quality Assurance Program. The Quality Manager must convince executive and operating officers that there is a return on their investment.