This article will make it easier to to understand some comparableities 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-primarily based, fewer complexes, without so much technical points and COBIT is more complete, process-orientated, risk, management wants, and it relates more to technical issues. COBIT covers quality and security requirements reminiscent of effectiveness, efficiency, integrity, availability, compliance, confidentiality and reliability of information. These are the foundations for the control goals of COBIT.
As recognized by the COSO agenda, the process of internal control comprises of 5 components. These make up for a highly competent framework for investigating and evaluating the system of inner control that is put to use in a business. These parts are acknowledged under:
– “Management Surroundings, this offers with setting the character of a enterprise and influencing the control awareness of its staff and it contains the glory, ethical values, working methods of the administration, system for assigning authority and the mandatory procedures for organizing and growing the employees in a enterprise association.
– Risk assessment, which consists of the detection and examination of the risks which might be most likely to pose a risk to attaining desired objectives.
– Management Activities, these are the principles and laws which help in guaranteeing that the orders of the management are satisfactorily carried out.
– Data and communication which are responsible for all news associated to the operation and funds and so forth of a business that helps in its smooth running
– Monitoring of internal controls which factors out any scarcity in its quality making certain it is remedied so the system can be improved “(Bushman, 2007).
The domains of COBIT are:
– Planning and organizing
– Acquisition and implementation
– Mange IT investment
– Delivery and assist
– Monitoring and evaluation.
COBIT focuses on IT components, which are process orientated. Moreover, the COBIT comprises the system of development, operation, delivery, and implementation. COBIT helps strengthens evaluation, understanding and train of appropriate inner controls. COBIT additionally, provides a great framework for risk management and improves communication amongst administration, customers and auditors concerning IT governance. Accordingly, COSO focuses on monitoring and evaluation, which can also be one of the COBIT’s domains. Therefore, COSO and COBIT build collectively a powerful assessment of IT based systems and processes.
For instance, the corporate is implementing a new system. Subsequently, the enterprise can take an advantage of COBIT and COSO. In this case, COBIT shall be very helpful to span the system on technology primarily based processes. CABIT would additionally assist in configuration of completely different systems (new with an existing accounting system). COSO would help to guage the monetary part and risk. Moreover, the COSO additionally will assessment all accounting related facets and the COBIT will assist in technological integration and it additionally will assist with delivery and support of the implementation.
The mixture of COSO and COBIT might be very beneficial for AFM Corporation. All evaluation and documentation of processes might be scoped by the COSO framework and all technological points may very well be reviewed in particulars by the COBIT framework. COBIT would additionally help with the advancedity of software system. Then again, the COSO will support management activities and the COBIT will assist in detailed monitoring and evaluating.
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