This article will show you how to to understand some relatedities and variations between two frameworks: COSO and COBIT. Some basic knowledge about these networks is required especially for E-Commerce. COSO and COBIT are comparable frameworks, COSO’s approach is more broad-based, fewer complexes, without a lot technical points and COBIT is more comprehensive, process-oriented, risk, management wants, and it relates more to technical issues. COBIT covers quality and security requirements similar to effectiveness, effectivity, integrity, availability, compliance, confidentiality and reliability of information. These are the foundations for the control targets of COBIT.
As acknowledged by the COSO agenda, the process of internal control contains of five components. These make up for a highly competent framework for investigating and evaluating the system of inside control that is put to make use of in a business. These parts are stated below:
– “Management Setting, this offers with setting the character of a enterprise and influencing the management awareness of its workers and it contains the dignity, ethical values, working strategies of the management, system for assigning authority and the mandatory procedures for organizing and growing the employees in a enterprise association.
– Risk assessment, which includes the detection and examination of the risks which can be most likely to pose a risk to attaining desired objectives.
– Control Activities, these are the principles and rules which assist in guaranteeing that the orders of the management are satisfactorily carried out.
– Info and communication which are answerable for all news associated to the operation and finances and many others of a business that helps in its smooth running
– Monitoring of inner controls which points out any shortage in its quality making sure it is remedied so the system might be improved “(Bushman, 2007).
The domains of COBIT are:
– Planning and organizing
– Acquisition and implementation
– Mange IT funding
– Delivery and help
– Monitoring and evaluation.
COBIT focuses on IT parts, which are process orientated. Moreover, the COBIT accommodates the system of development, operation, delivery, and implementation. COBIT helps strengthens evaluation, understanding and exercise of appropriate internal controls. COBIT additionally, provides an excellent framework for risk management and improves communication amongst management, customers and auditors relating to IT governance. Accordingly, COSO focuses on monitoring and evaluation, which is also one of many COBIT’s domains. Subsequently, COSO and COBIT build collectively a powerful assessment of IT primarily based systems and processes.
For example, the company is implementing a new system. Therefore, the enterprise can take an advantage of COBIT and COSO. In this case, COBIT shall be very useful to span the system on technology primarily based processes. CABIT would additionally assist in configuration of two totally different systems (new with an current accounting system). COSO would help to evaluate the monetary part and risk. Moreover, the COSO additionally will evaluate all accounting associated elements and the COBIT will assist in technological integration and it also will help with delivery and assist of the implementation.
The combination of COSO and COBIT shall be very beneficial for AFM Corporation. All evaluation and documentation of processes could possibly be scoped by the COSO framework and all technological issues could be reviewed in details by the COBIT framework. COBIT would also assist with the complicatedity of software system. Alternatively, the COSO will help control activities and the COBIT will help in detailed monitoring and evaluating.
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