Quick Answer
The answer is communication barriers, along with quality issues and loss of control, as the three common risks associated with outsourcing software development. Communication barriers are correct because they directly undermine the client’s ability to convey requirements, clarify ambiguities, and monitor progress, leading to misaligned deliverables and increased rework. On the CISA exam, this topic tests your understanding of vendor management and the inherent risks in third-party relationships, often appearing in scenario-based questions where you must identify which risks stem from geographic or cultural distance. A common trap is confusing operational risks like cost overruns with the specific communication breakdowns that cause them. Memory tip: think of the three C’s of outsourcing risk—Communication, Control, and Quality—to quickly recall the core vulnerabilities.
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 THREE of the following are common risks associated with outsourcing software development?
Quality issues due to lack of oversight
Common risk.
Loss of intellectual property
Risk of outsourcing.
Communication barriers
Common challenge.
Faster time to market
Why wrong: Potential benefit.
Increased internal control
Why wrong: Outsourcing may reduce control.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Quality issues due to lack of oversight
Option A is correct because outsourcing software development often results in quality issues due to the client's limited visibility into the vendor's development processes, testing rigor, and adherence to coding standards. Without direct oversight, defects may go undetected until later stages, increasing rework costs and project delays.
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.
Quality issues due to lack of oversight
Why this is correct
Common risk.
Related concept
Read the scenario before looking for a memorised answer.
Loss of intellectual property
Why this is correct
Risk of outsourcing.
Related concept
Read the scenario before looking for a memorised answer.
Communication barriers
Why this is correct
Common challenge.
Related concept
Read the scenario before looking for a memorised answer.
Faster time to market
Why it's wrong here
Potential benefit.
Increased internal control
Why it's wrong here
Outsourcing may reduce control.
Common exam traps
The trap here is that candidates confuse potential benefits (faster time to market, increased internal control) with risks, failing to distinguish between advantages and the inherent vulnerabilities of outsourcing.
Detailed technical explanation
In outsourcing engagements, risks like loss of intellectual property arise from inadequate contractual protections, such as missing non-disclosure agreements or unclear ownership clauses in the statement of work. Communication barriers are exacerbated by time zone differences and lack of shared collaboration tools, leading to misinterpretation of requirements and integration issues. These risks are documented in frameworks like COBIT 5 and ISO 27001, which emphasize vendor risk management and continuous monitoring.
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
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 — study guide chapter
Learn the concepts, then practise the questions
Information Systems Acquisition, Development and Implementation practice questions
Targeted practice on this topic area only
All CISA questions
509 questions across all exam domains
Certified Information Systems Auditor CISA study guide
Full concept coverage aligned to exam objectives
CISA practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Practise CISA questions linked to Governance and Management of IT.
Practise CISA questions linked to Information Systems Acquisition, Development and Implementation.
Practise CISA questions linked to Information Systems Operations and Business Resilience.
Practise CISA questions linked to Protection of Information Assets.
Practise CISA questions linked to Information System Auditing Process.
Practise CISA questions linked to CISA fundamentals.
Practise CISA questions linked to CISA scenario.
Practise CISA questions linked to CISA troubleshooting.
Practice this exam
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
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: Quality issues due to lack of oversight — Option A is correct because outsourcing software development often results in quality issues due to the client's limited visibility into the vendor's development processes, testing rigor, and adherence to coding standards. Without direct oversight, defects may go undetected until later stages, increasing rework costs and project delays.
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.
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 →
Last reviewed: Jun 11, 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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.