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CISA Practice Question: Deciding whether to centralize or decentralize…
A company is deciding whether to centralize or decentralize its IT function. Which of the following is an advantage of a centralized IT structure?
⚠ Common exam trap
CISA often tests the trade-off between centralization and decentralization; candidates may confuse the benefits of decentralization (speed, local alignment) with those of centralization (standardization, cost efficiency).
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Standardized technology and processes across the enterprise
A centralized IT structure consolidates decision-making, resources, and standards at the enterprise level, which drives uniformity in technology stacks, processes, and policies. This standardization reduces complexity, lowers costs through economies of scale, and simplifies compliance and security management. The other options describe advantages of decentralized structures, where business units have more autonomy and can respond faster to local needs.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Standardized technology and processes across the enterprise
Why this is correct
Standardised technology and processes across the enterprise directly satisfies the consistency constraint that decentralised structures struggle to meet. A single IT function enforces uniform configurations, patch levels and change control, reducing duplication and shadow IT. Centralisation also concentrates scarce expertise, which matters when the company must demonstrate repeatable, auditable controls to regulators.
- ✗
Faster decision-making at the business unit level
Why it's wrong here
Faster decision-making at the business unit level describes decentralisation, where local autonomy shortens approval chains for unit-specific needs. Centralisation instead routes decisions through a single authority, adding coordination overhead. This option would be correct if the question asked for a decentralised advantage, such as responsiveness to local market conditions.
- ✗
Better alignment with individual department goals
Why it's wrong here
Better alignment with individual department goals describes decentralisation, where departmental autonomy lets each unit prioritise its own objectives. Centralisation instead consolidates decision-making under a single authority, so department-specific goals are subordinated to organisation-wide standards. Decentralisation would be the right choice where business units need responsiveness to distinct local or functional requirements.
- ✗
Increased responsiveness to local business needs
Why it's wrong here
Increased responsiveness to local business needs describes decentralisation, where business units hold their own IT budgets and decision rights, enabling faster local tailoring. Centralisation instead concentrates those decisions, so this fails the scenario. It tempts because responsiveness genuinely matters in geographically dispersed firms with distinct regulatory or market demands — precisely where decentralised IT is the right choice.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official ISACA exam blueprint
This CISA practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CISA exam.