The answer is defining IT policies and standards, along with approving the annual IT budget and major capital expenditures. These are key responsibilities of an IT steering committee because this senior governance body exists to align IT strategy with business objectives, ensuring that resources are allocated to approved projects while also establishing the governance framework for security, compliance, and operational consistency. On the Certified Information Systems Auditor CISA exam, this concept tests your understanding of IT governance structures and the separation of duties between steering committees, which set strategic direction and approve funding, versus operational management, which executes projects. A common trap is confusing the steering committee’s oversight role with the board of directors’ ultimate fiduciary duties or with project-level decisions. Remember the memory tip: “Steer the budget, set the standards” — the committee steers the ship by controlling the purse strings and defining the rules of the road.
CISA Governance and Management of IT Practice Question
This CISA practice question tests your understanding of governance and management of it. 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 key responsibilities of an IT steering committee?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Approving the annual IT budget and major capital expenditures
The IT steering committee is a senior-level governance body responsible for aligning IT strategy with business objectives. Approving the annual IT budget and major capital expenditures (A) is a core fiduciary duty, ensuring resources are allocated to approved projects and initiatives. Defining IT policies and standards (C) establishes the governance framework for security, compliance, and operational consistency across the enterprise.
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.
✓
Approving the annual IT budget and major capital expenditures
Why this is correct
The steering committee typically approves the IT budget and major expenditures to ensure alignment with business strategy.
Related concept
Read the scenario before looking for a memorised answer.
✗
Performing daily system monitoring and incident response
Why it's wrong here
Daily monitoring is an operational task handled by IT operations, not the steering committee.
✓
Defining IT policies and standards
Why this is correct
The steering committee sets high-level policies and standards to guide IT governance.
Related concept
Read the scenario before looking for a memorised answer.
✗
Writing application code for new software features
Why it's wrong here
Coding is a development task, not a governance responsibility.
✗
Configuring firewall rules and network access controls
Why it's wrong here
Network configuration is an operational or security task, not a steering committee function.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing strategic governance roles (steering committee) with operational or technical roles (system administrators, developers, or network engineers), leading candidates to select hands-on tasks like monitoring, coding, or firewall configuration.
Detailed technical explanation
How to think about this question
An IT steering committee typically operates at the executive or director level, reviewing project portfolios, prioritizing initiatives based on business value and risk, and approving major expenditures (e.g., >$100,000). They do not engage in day-to-day IT operations; instead, they rely on frameworks like COBIT or ITIL to delegate operational controls to management. A real-world example is a steering committee approving a multi-million-dollar ERP migration budget while the infrastructure team handles firewall rule changes for the new system.
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.
Governance and Management of IT — This question tests Governance and Management of IT — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Approving the annual IT budget and major capital expenditures — The IT steering committee is a senior-level governance body responsible for aligning IT strategy with business objectives. Approving the annual IT budget and major capital expenditures (A) is a core fiduciary duty, ensuring resources are allocated to approved projects and initiatives. Defining IT policies and standards (C) establishes the governance framework for security, compliance, and operational consistency across the enterprise.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. An IT steering committee is reviewing a proposal for a new customer relationship management (CRM) system. What is the committee's MOST important role?
medium
A.Approving technical specifications
B.Selecting the vendor
✓ C.Ensuring alignment with business objectives
D.Managing the project budget
Why C: Option B is correct because the steering committee's primary role is to ensure that the proposed system aligns with business objectives. Option A is incorrect as technical specification approval is typically handled by technical teams. Option C is incorrect because budget management is a project management responsibility. Option D is incorrect because vendor selection is often a procurement function, though the committee may provide input.
Variation 2. An IT steering committee is reviewing a proposal for a new customer relationship management (CRM) system. Which of the following BEST demonstrates that the proposal aligns with the organization's strategic goals?
easy
✓ A.The business case includes a clear link to the organization's five-year strategic plan.
B.The project manager has extensive experience with CRM implementations.
C.The proposed system includes advanced analytics capabilities.
D.The vendor offers discounted licensing for the first year.
Why A: Option C is correct because a clear link to the organization's strategic plan demonstrates alignment. Option A is about PM experience, not alignment. Option B is a feature that may not be strategic. Option D is a cost-saving tactic, not evidence of strategic alignment.
Last reviewed: Jun 11, 2026
Question Discussion
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