Earned Value Analysis (EVA) is a project management technique that integrates scope, time, and cost data to measure project performance and progress objectively. EVA allows internal auditors to assess whether a software development project is on track by comparing planned work with completed work and actual costs.
Here’s why EVA is the most appropriate choice:
Evaluates Project Progress and Performance – EVA measures how much work has been completed against the planned schedule and budget, helping auditors analyze project efficiency.
Identifies Deviations – It highlights cost overruns or delays in task completion, which is critical for software development projects.
Uses Key Metrics – EVA includes essential indicators like:
Planned Value (PV) – The budgeted cost of work scheduled.
Earned Value (EV) – The value of actual work performed.
Actual Cost (AC) – The real cost incurred for work completed.
Schedule Variance (SV) and Cost Variance (CV) – Indicators of deviations from planned performance.
Supports Risk-Based Internal Audit Approach – The IIA emphasizes risk-based auditing, and EVA helps auditors assess risks related to project cost overruns, schedule slippage, and performance gaps.
A. A Balanced Scorecard – This measures overall organizational performance across perspectives (financial, customer, internal processes, and learning & growth), but it is not specifically designed for evaluating project task completion.
B. A Quality Audit – This focuses on compliance with quality standards and does not measure project task completion efficiency.
D. Trend Analysis – This evaluates patterns over time but does not provide a structured measurement of project progress in terms of cost, time, and completion percentage.
The IIA’s GTAG (Global Technology Audit Guide) on IT Project Management – Recommends using earned value analysis for project auditing.
IIA’s International Professional Practices Framework (IPPF) – Performance Standard 2120 (Risk Management) – Emphasizes the need for internal auditors to evaluate the effectiveness of project risk management, which EVA supports.
COSO’s Enterprise Risk Management (ERM) Framework – Encourages structured performance measurement techniques like EVA to monitor projects.
Why Not the Other Options?IIA References:Thus, Earned Value Analysis (EVA) is the correct answer because it provides a precise, quantitative way to measure project performance. ✅
