An IS auditor reviewing a project to acquire an IT-based solution learns the risk associated with project failure has been assessed as high. What is the auditor's BEST course of action?
A.
Reassess project costs to ensure they are within the organization's risk tolerance.
B.
Review benefits realization against the business case.
C.
Inform management about potential losses due to project failure.
D.
Review the risk monitoring process during project execution.
D. Reviewing benefits realization against the business case (option B) is important, but it addresses a different aspect of project management. It focuses on ensuring that the project delivers the expected benefits and aligns with the business objectives.
However, given that the risk of project failure has been assessed as high, the BEST course of action is to review the risk monitoring process during project execution (option D). This ensures that risks are being actively managed and mitigated throughout the project, which is crucial for preventing failure and ensuring project success.
If the IS auditor determines that the risk associated with project failure is high, they must evaluate how this affects the realization of the business case benefits. The business case is a key document that will determine the success of the project and its evaluation is important, especially when the risks are high. This will provide a better understanding of the project progress and reporting to management.
I would strongly go for option C:
C. Inform management about potential losses due to project failure.
This option allows management to re-evaluate the acquisition decision with a clear understanding of the risks involved. By being proactive, management can conduct a thorough cost-benefit analysis and determine if the project aligns with the organization's risk tolerance and strategic objectives.
C. Inform management about potential losses due to project failure.
High-risk projects with the potential for failure can have significant financial, operational, and reputational implications for the organization. It is crucial for management to be aware of these risks so that appropriate actions can be taken to mitigate them. By informing management about the potential losses due to project failure, the auditor helps ensure that decision-makers have the necessary information to allocate resources effectively, reassess project priorities, and implement appropriate risk mitigation strategies.
C. Inform management about potential losses due to project failure.
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