Quick Answer
The answer is cost-benefit analysis and alignment with business strategy. These two are essential components of a business case for a new system because a business case must both justify the financial investment and demonstrate how the system directly supports the organization’s strategic goals. The cost-benefit analysis quantifies the expected return on investment, while strategic alignment ensures the system enables key objectives, making both necessary for approval. On the Certified Information Systems Auditor CISA exam, this concept tests your understanding of how IT governance links project justification to enterprise strategy; a common trap is selecting only financial metrics like ROI or payback period, forgetting that a system without strategic fit is unlikely to be approved. To remember, think of the “two pillars” of a business case: money and mission. A useful mnemonic is “Cost and Compass”—the cost-benefit analysis provides the numbers, and strategic alignment provides the direction.
This CISA practice question tests your understanding of information systems acquisition, development and implementation. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
Which TWO of the following are essential components of a business case for a new system?
Implementation schedule.
Why wrong: Schedule is developed after approval.
Detailed system architecture.
Why wrong: Architecture comes after approval.
Alignment with business strategy.
Ensures project supports organizational goals.
Risk assessment for all identified risks.
Why wrong: Risk assessment is important but not always a separate component; often part of analysis.
Cost-benefit analysis.
Quantifies investment justification.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Alignment with business strategy.
A business case must justify the investment in a new system by demonstrating how it supports the organization's strategic goals and provides net financial benefit. Alignment with business strategy (C) ensures the system directly enables key objectives, while cost-benefit analysis (E) quantifies the expected return on investment, making both essential for approval.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Implementation schedule.
Why it's wrong here
Schedule is developed after approval.
Detailed system architecture.
Why it's wrong here
Architecture comes after approval.
Alignment with business strategy.
Why this is correct
Ensures project supports organizational goals.
Related concept
Read the scenario before looking for a memorised answer.
Risk assessment for all identified risks.
Why it's wrong here
Risk assessment is important but not always a separate component; often part of analysis.
Cost-benefit analysis.
Why this is correct
Quantifies investment justification.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates confuse project management deliverables (like schedules and detailed architectures) with the strategic and financial justification required in a business case, leading them to select implementation schedule or detailed system architecture instead of the correct options.
Detailed technical explanation
The business case serves as the foundation for investment decisions, requiring a clear link to strategic objectives (e.g., increasing market share or regulatory compliance) and a financial model that includes net present value (NPV), internal rate of return (IRR), and payback period. In practice, a flawed cost-benefit analysis—such as underestimating ongoing operational costs or overestimating productivity gains—can lead to project failure, as seen in many ERP implementations where hidden integration costs exceeded initial estimates.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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FAQ
Information Systems Acquisition, Development and Implementation — This question tests Information Systems Acquisition, Development and Implementation — Read the scenario before looking for a memorised answer..
The correct answer is: Alignment with business strategy. — A business case must justify the investment in a new system by demonstrating how it supports the organization's strategic goals and provides net financial benefit. Alignment with business strategy (C) ensures the system directly enables key objectives, while cost-benefit analysis (E) quantifies the expected return on investment, making both essential for approval.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 25, 2026
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.
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