 Understanding the Metric:

The Budgeted Cost of Work Performed (BCWP), also known as Earned Value (EV), represents the value of work actually performed up to a specific date, based on the budgeted cost.

This metric is part of Earned Value Management (EVM) and is used to track project performance by comparing planned and actual progress.

 Why Cost Control?

Cost control involves monitoring expenses, comparing actual performance with the budget, and taking corrective actions when needed.

BCWP is a core metric in cost control as it helps in determining whether a project is staying within budget.

 Why Other Options Are Incorrect:

A. Resource planning: Focuses on allocating personnel, equipment, and materials but does not deal with financial performance.

B. Cost estimating: Involves predicting project costs before execution, but BCWP is used during the project, not during estimation.

C. Cost budgeting: Refers to setting a budget, whereas BCWP measures how much work has been performed relative to that budget.

 IIA Standards and References:

IIA Standard 2120 – Risk Management: Internal auditors should assess cost control mechanisms to manage financial risks.

IIA Practice Guide: Auditing Capital Projects (2016): Emphasizes earned value management as a key cost control measure.

PMBOK Guide – Cost Management Knowledge Area: Highlights BCWP as a crucial tool for monitoring and controlling project costs.