Business Case and Feasibility Analysis CISA Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   Which financial metric in a cost-benefit analysis calculates the ratio of the present value of benefits to the present value of costs?

   • AReturn on investment (ROI)
   • BPayback period
   • CInternal rate of return (IRR)
   • DBenefit-cost ratio (BCR)
   Reveal Solution Discussion Select an answer first
2. 17expert · hard

   A retail company is considering a new e-commerce platform. The business case shows a positive NPV, but the platform would require the company to outsource its payment processing to a third-party provider. The company's IT strategy emphasizes maintaining control over customer data. Which of the following is the most appropriate recommendation for the IS auditor?

   • ACancel the project because it conflicts with the IT strategy.
   • BRecommend a different platform that allows in-house payment processing.
   • CInclude a risk assessment of the outsourcing arrangement and ensure the business case addresses the IT strategy's control requirements.
   • DProceed with the platform because the NPV is positive.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   An IS auditor is preparing a feasibility study report for a proposed supply chain management system. The report must present the findings and recommendations to the board of directors. Which of the following is the most important element to include in the report?

   • AA list of all stakeholders and their contact information
   • BDetailed technical specifications of the proposed system
   • CA detailed project plan with milestones and deadlines
   • DA comparison of alternatives with a clear recommendation based on feasibility criteria
   Reveal Solution Discussion Select an answer first
5. 19foundation · easy

   What is the primary purpose of a feasibility study report?

   • ATo provide a detailed technical design for the system
   • BTo document the project's code and configuration
   • CTo present findings and recommendations to decision-makers
   • DTo list all project risks and their mitigation plans
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6. 20expert · hard

   An IS auditor is preparing a feasibility study report for a proposed data warehouse. The report will be presented to the board of directors, who are not familiar with technical details. The report must include a recommendation. Which of the following is the most appropriate structure for the report?

   • AInclude all raw data and calculations in the main body of the report.
   • BStart with a detailed technical analysis, followed by the recommendation.
   • CStart with an executive summary that includes the recommendation, followed by supporting analysis.
   • DPresent the report without a recommendation to allow the board to make an unbiased decision.
   Reveal Solution Discussion Select an answer first