The correct answer is to re-evaluate the feasibility study and update the business case. This is the most appropriate action because the feasibility study serves as the foundational justification for a project, and when expected benefits drop significantly, the original cost-benefit analysis becomes invalid; proceeding without updating the business case risks committing resources to a project that may no longer deliver adequate return on investment. On the CISA exam, this scenario tests your understanding of the systems development lifecycle (SDLC) and the IS auditor’s role in ensuring that project governance controls—like revisiting feasibility after material changes—are enforced. A common trap is to recommend stopping the project immediately or adjusting only the budget, but the auditor’s duty is to ensure the business case reflects current data before any go/no-go decision. Memory tip: think “Feasibility is not a one-and-done—when benefits drop, the case must stop and be re-done.”
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 the feasibility study for a new inventory system, the project team identifies that the expected benefits are significantly lower than the initial estimates. What is the MOST appropriate action for the IS auditor to recommend?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Re-evaluate the feasibility study and update the business case.
When expected benefits fall significantly below initial estimates, the IS auditor should recommend re-evaluating the feasibility study and updating the business case. This ensures that the project's justification is based on current, accurate data before proceeding, which is a key control in the systems development lifecycle (SDLC) to prevent investment in a project that may no longer deliver adequate value.
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.
✗
Proceed with the project as planned, focusing on cost reduction.
Why it's wrong here
Proceeding without reassessment ignores the discrepancy.
✗
Cancel the project immediately and document lessons learned.
Why it's wrong here
Cancellation without further analysis may be premature.
✗
Continue with the project but postpone the benefits realization.
Why it's wrong here
Postponing does not address the root cause.
✓
Re-evaluate the feasibility study and update the business case.
Why this is correct
Re-evaluation ensures accurate decision-making based on current data.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse the need for immediate project cancellation (Option B) with proper project governance, but the correct approach is to first re-evaluate the feasibility study to determine if the project can be salvaged with a revised business case.
Detailed technical explanation
How to think about this question
The feasibility study is a formal document that includes cost-benefit analysis, risk assessment, and technical evaluation. Under the SDLC, the business case must be updated whenever material assumptions change, such as a significant drop in expected benefits. This aligns with COBIT 5's BAI01 (Manage Programmes and Projects) and ISACA's guidance that the business case should be a living document reviewed at each project phase gate.
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: Re-evaluate the feasibility study and update the business case. — When expected benefits fall significantly below initial estimates, the IS auditor should recommend re-evaluating the feasibility study and updating the business case. This ensures that the project's justification is based on current, accurate data before proceeding, which is a key control in the systems development lifecycle (SDLC) to prevent investment in a project that may no longer deliver adequate value.
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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