Business Case and Feasibility Analysis CISA Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A retail company is evaluating three alternatives for a new inventory management system: (1) custom development, (2) purchasing a commercial off-the-shelf (COTS) product, and (3) enhancing an existing legacy system. The company has a limited budget and needs the system within six months. Which alternative should the IS auditor recommend as the most feasible?

   • APurchasing a COTS product, because it is likely to meet the timeline and budget constraints.
   • BCustom development, because it can be tailored to the company's exact needs.
   • CCustom development, because it will have the lowest total cost of ownership.
   • DEnhancing the legacy system, because it avoids the cost of a new system.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   In a business case, which element primarily demonstrates how the proposed system supports the organization's strategic direction?

   • AUser training plan
   • BDetailed project schedule
   • CHardware specifications
   • DAlignment with organizational goals
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4. 23foundation · easy

   In the business case and feasibility analysis process, what is the primary role of end users?

   • ATo provide input on requirements and operational needs
   • BTo approve the project budget
   • CTo develop the technical architecture
   • DTo conduct the cost-benefit analysis
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5. 24expert · hard

   A bank is considering a new mobile banking application. The feasibility study identifies two major risks: (1) regulatory compliance risk due to data protection laws, and (2) technical risk due to integration with legacy core banking systems. The bank has a strict deadline to launch the app before a competitor. Which of the following is the most appropriate approach for the IS auditor to recommend?

   • AConduct a detailed risk assessment and develop mitigation plans for both risks before proceeding.
   • BFocus only on the regulatory risk and ignore the technical risk.
   • CProceed with the project and address the risks during implementation.
   • DCancel the project because the risks are too high.
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   During the feasibility analysis phase, what is the primary purpose of assessing risks associated with the proposed system?

   • ATo identify potential risks and their impact on project success
   • BTo assign blame for potential project failures
   • CTo eliminate all risks before project approval
   • DTo guarantee the project will be completed without issues
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