The answer is to conduct a root cause analysis to identify the reasons for the cost overrun. This is correct because the earned value management cost variance root cause analysis reveals that the project is both over budget, with an EV of $500,000 against an AC of $600,000, and behind schedule, as the EV is less than the PV of $550,000. Before any corrective action can be taken, the project manager must first understand why the cost variance occurred, ensuring that the fix addresses the underlying issue rather than just the symptom. On the Certified Information Systems Auditor CISA exam, this scenario tests your understanding of the control process: you must diagnose before you treat. A common trap is jumping straight to budget reallocation or scope changes, but the CISA framework prioritizes investigation over action. Remember the mnemonic “D-I-A” for variances: Diagnose (root cause), Investigate (data), then Act (corrective measures).
CISA Practice Question: Information Systems Acquisition, Development and Implementation
This CISA practice question tests your understanding of information systems acquisition, development and implementation. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
During a system development project, the project manager notices that the actual cost is significantly higher than the planned cost at the 50% completion point. The earned value (EV) is $500,000, the actual cost (AC) is $600,000, and the planned value (PV) is $550,000. Which of the following is the MOST appropriate action?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Conduct a root cause analysis to identify the reasons for cost overrun
Option C is correct because the project is over budget (EV $500K vs AC $600K) and behind schedule (EV $500K vs PV $550K). Before taking corrective action, the project manager must first perform a root cause analysis to understand why costs are exceeding planned values. This aligns with the CISA’s emphasis on identifying the underlying cause of variances before implementing changes to scope, budget, or schedule.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Request additional budget from senior management
Why it's wrong here
This does not address the root cause of cost overrun.
✗
Reduce the project scope to align with the budget
Why it's wrong here
Scope reduction is a last resort; first understand why costs are high.
✓
Conduct a root cause analysis to identify the reasons for cost overrun
Why this is correct
Understanding the cause is the first step before taking corrective action.
Related concept
Read the scenario before looking for a memorised answer.
✗
Crash the project schedule to make up for lost time
Why it's wrong here
The project is behind schedule, but crashing would increase costs further.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often jump to a corrective action (like crashing or requesting more budget) without first diagnosing the root cause, but the CISA exam emphasizes that analysis must precede action in project management.
Detailed technical explanation
How to think about this question
Earned Value Management (EVM) uses three key metrics: Planned Value (PV), Earned Value (EV), and Actual Cost (AC). At 50% completion, the Cost Performance Index (CPI = EV/AC) is 0.833, indicating that for every dollar spent, only $0.83 of work is earned. The Schedule Performance Index (SPI = EV/PV) is 0.909, showing the project is behind schedule. Root cause analysis (e.g., using a fishbone diagram or 5 Whys) is the first step in the Plan-Do-Check-Act cycle to identify whether the variance stems from inaccurate estimates, resource inefficiency, or external dependencies before any corrective action is taken.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the CISA exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Information Systems Acquisition, Development and Implementation — This question tests Information Systems Acquisition, Development and Implementation — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Conduct a root cause analysis to identify the reasons for cost overrun — Option C is correct because the project is over budget (EV $500K vs AC $600K) and behind schedule (EV $500K vs PV $550K). Before taking corrective action, the project manager must first perform a root cause analysis to understand why costs are exceeding planned values. This aligns with the CISA’s emphasis on identifying the underlying cause of variances before implementing changes to scope, budget, or schedule.
What should I do if I get this CISA question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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