This article will make it easier to to understand some relatedities and differences between frameworks: COSO and COBIT. Some primary knowledge about these two networks is required particularly for E-Commerce. COSO and COBIT are comparable frameworks, COSO’s approach is more broad-primarily based, fewer complexes, without a lot technical issues and COBIT is more comprehensive, process-oriented, risk, control needs, and it relates more to technical issues. COBIT covers quality and security requirements corresponding 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 inside control includes of 5 components. These make up for a highly competent framework for investigating and evaluating the system of inner control that’s put to use in a business. These elements are acknowledged beneath:
– “Management Atmosphere, this deals with setting the character of a enterprise and influencing the management awareness of its employees and it consists of the honor, ethical values, working methods of the administration, system for assigning authority and the required procedures for organizing and developing the staff in a enterprise association.
– Risk assessment, which consists of the detection and examination of the risks which are most likely to pose a risk to attaining desired objectives.
– Management Activities, these are the foundations and laws which help in guaranteeing that the orders of the management are satisfactorily carried out.
– Info 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 shortage in its quality making certain it is remedied so the system could be improved “(Bushman, 2007).
The domains of COBIT are:
– Planning and organizing
– Acquisition and implementation
– Mange IT funding
– Delivery and assist
– Monitoring and evaluation.
COBIT focuses on IT parts, which are process orientated. Moreover, the COBIT incorporates the system of development, operation, delivery, and implementation. COBIT helps strengthens evaluation, understanding and exercise of appropriate inner controls. COBIT also, provides a good framework for risk administration and improves communication amongst management, users and auditors regarding IT governance. Accordingly, COSO focuses on monitoring and analysis, which is also one of the COBIT’s domains. Due to this fact, COSO and COBIT build together a powerful evaluation of IT primarily based systems and processes.
For example, the corporate is implementing a new system. Subsequently, the business can take an advantage of COBIT and COSO. In this case, COBIT might be very useful 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 assist to evaluate the financial part and risk. Moreover, the COSO also will evaluation all accounting related features and the COBIT will assist in technological integration and it also will assist with delivery and assist of the implementation.
The mix of COSO and COBIT will probably be very useful for AFM Corporation. All evaluation and documentation of processes could possibly be scoped by the COSO framework and all technological points could possibly be reviewed in particulars by the COBIT framework. COBIT would additionally help with the advancedity of software system. However, the COSO will support management activities and the COBIT will help in detailed monitoring and evaluating.
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