Which of the following should an IS auditor review to understand project progress in terms of time,
budget and deliverables for early detection of possible overruns and for projecting estimates at
completion (EACs)?
A.
Function point analysis
B.
Earned value analysis
C.
Cost budget
D.
Program Evaluation and Review Technique
Explanation:
Earned value analysis (EVA) is an industry standard method for measuring a project’s progress at any
given point in time, forecasting its completion date and final cost, and analyzing variances in the
schedule and budget as the project proceeds. It compares the planned amount of work with what
has actually been completed, to determine if the cost, schedule and work accomplished are
progressing in accordance with the plan. EVA works most effectively if a well-formed work
breakdown structure exists. Function point analysis (FPA) is an indirect measure of software size and
complexity and, therefore, does not address the elements of time and budget. Cost budgets do not
address time. PERT aids in time and deliverables management, but lacks projections for estimates at
completion (EACs) and overall financial management.