Business Case and Feasibility Analysis CISA Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A university is developing a business case for a new student information system. The project team includes representatives from the registrar's office, IT, and the finance department. Which stakeholder group is most likely to provide input on the operational feasibility of the system?

   • ARegistrar's office
   • BFinance department
   • CIT department
   • DExternal consultants
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2. 7expert · hard

   A manufacturing company is evaluating a new production scheduling system. The project has an initial cost of $1 million and is expected to generate annual savings of $250,000 for five years. However, there is a 30% probability that the system will not integrate well with existing machinery, resulting in additional costs of $200,000 in year one. The company uses a 10% discount rate. What is the expected NPV of the project? (Present value factor for an annuity of $1 at 10% for 5 years is 3.7908; present value factor for $1 at 10% for 1 year is 0.9091.)

   • A-$52,300
   • B$250,000
   • C$47,700
   • D-$106,846
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4. 8application · medium

   A healthcare organization is planning to implement a new patient portal that will integrate with its electronic health record (EHR) system. During the feasibility analysis, the IS auditor identifies a risk that the integration may not be compatible with the existing EHR due to outdated APIs. Which of the following is the most appropriate action for the IS auditor to take?

   • ADocument the risk in the feasibility study report and recommend a technical proof of concept before proceeding.
   • BRecommend proceeding with the project because the risk is technical and can be resolved during implementation.
   • CAdvise the project sponsor to cancel the project because the risk is too high.
   • DIgnore the risk because it is not within the scope of the feasibility study.
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5. 9foundation · easy

   Which element is most important to include in a feasibility study report to help decision-makers understand the recommended option?

   • AA copy of the vendor's marketing materials
   • BA detailed project plan with task assignments
   • CA clear statement of the recommendation and the rationale behind it
   • DA complete list of all possible alternatives, regardless of feasibility
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6. 10application · medium

   A multinational corporation is considering a new data analytics platform. The business case includes a cost-benefit analysis showing a positive return on investment, but the platform would require storing data in a country with strict data residency laws. The company's IT strategy emphasizes data sovereignty and compliance. Which of the following should the IS auditor recommend to ensure alignment with the business strategy?

   • AModify the business case to include a compliance risk assessment and explore alternative deployment options that meet data residency requirements.
   • BProceed with the platform as planned, since the ROI is positive.
   • CAsk the legal department to approve the project without further analysis.
   • DRecommend a different project that does not involve data storage.
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