The best way to determine whether IT investments are meeting business objectives is to compare the realized return on investment (ROI) versus the projected ROI (Option B). This approach measures actual performance against planned expectations.
ISACA CISA Reference: The ISACA IT Governance framework emphasizes performance measurement through ROI analysis, ensuring IT investments align with strategic objectives.
Risk Implication: If actual ROI is lower than projected, this may indicate ineffective investment decisions, poor execution, or misalignment with business goals.
Alternative Choices:
Option A: Break-even analysis only determines when an investment recoups its costs but does not measure performance against business objectives.
Option C: Budgeted versus actual spend assesses financial discipline but does not indicate business impact.
Option D: Industry average ROI provides benchmarking but does not assess internal goal achievement.

The most important consideration when planning the next audit after many findings is to follow up on the status of all recommendations, as this will ensure that the audit findings are addressed in a timely and effective manner, and that the root causes of the issues are resolved12. Following up on the status of all recommendations will also help to assess the progress and performance of the IT department, and to identify any new or emerging risks or challenges34.
References
1: What to consider when resolving internal audit findings3 2: A brief guide to follow up4 3: Guidance on auditing planning for Internal Audit2 4: Corrective Action Plan (CAP): How to Manage Audit Findings1

The first course of action that the auditor should recommend after finding that several employees are spending an excessive amount of time using social media sites for personal reasons is to implement policies addressing acceptable usage of social media during working hours. Policies can help define the scope, purpose, rules, and expectations of using social media in the workplace, both for personal and professional reasons. Policies can also specify the consequences of violating the policies, such as disciplinary actions or termination. Policies can help deter employees from misusing social media at work, which could affect their productivity, performance, or security. Policies can also help protect the organization from legal liabilities or reputational damages that could arise from inappropriate or unlawful employee behavior on social media.

The most useful metric for management to consider when reviewing a project portfolio is the net present value (NPV) of the portfolio. NPV is a measure of the profitability and value of a project or a portfolio of projects, taking into account the time value of money and the expected cash flows. NPV compares the present value of the future cash inflows with the present value of the initial investment and shows how much value is created or lost by undertaking a project or a portfolio of projects1. A positive NPV indicates that the project or portfolio is worth more than its cost and will generate a positive return on investment. A negative NPV indicates that the project or portfolio is worth less than its cost and will result in a loss. Therefore, NPV helps management to prioritize and select the most profitable and valuable projects or portfolios that align with the organizational strategy and objectives2. The other options are less useful or incorrect because:
* A. Cost of projects divided by total IT cost is not a useful metric for reviewing a project portfolio, as it does not reflect the benefits, value, or return of the projects. It only shows the proportion of IT budget allocated to the projects, which may not be indicative of their strategic importance or alignment3.
* B. Expected return divided by total project cost is not a useful metric for reviewing a project portfolio, as it does not account for the time value of money and the timing of cash flows. It only shows the average return per unit of cost, which may not be comparable across different projects or portfolios with different durations, risks, and cash flow patterns4.
* D. Total cost of each project is not a useful metric for reviewing a project portfolio, as it does not reflect the benefits, value, or return of the projects. It only shows the initial investment required for each project, which may not be indicative of their profitability or viability5. References: Portfolio, Program and Project Management Using COBIT 5 - ISACA, Project Portfolio Management - ISACA, CISA Review Manual (Digital Version), Standards, Guidelines, Tools and Techniques

The IS auditor's best course of action in this situation is to present observations for discussion only.
Observations are factual statements or findings that are based on the audit evidence collected and analyzed during the audit. Observations can be presented to management for discussion and feedback, but they should not be considered as final conclusions or recommendations until the audit is completed and the audit report is issued. The other options are not appropriate for presenting the findings to date, as they may compromise the audit quality or integrity. Reviewing working papers with the auditee is not advisable, as working papers are confidential documents that contain the auditor's notes, calculations, and opinions that may not be relevant or accurate for management's review. Requesting the auditee provide management responses is premature, as management responses should be obtained after the audit report is issued and the audit findings and recommendations are finalized. Requesting management wait until a final report is ready for discussion is impractical, as management may have a legitimate interest or need to know the audit progress and results as soon as possible. References: CISA Review Manual (Digital Version), Chapter 2, Section 2.3