This article will allow you to to understand some relatedities and differences between frameworks: COSO and COBIT. Some basic knowledge about these two networks is required especially for E-Commerce. COSO and COBIT are comparable frameworks, COSO’s approach is more broad-based, fewer complexes, without so much technical issues and COBIT is more comprehensive, 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 management aims of COBIT.
As recognized by the COSO agenda, the process of internal management includes of 5 components. These make up for a highly competent framework for investigating and evaluating the system of internal control that’s put to use in a business. These elements are said under:
– “Management Setting, this deals with setting the character of a business and influencing the control awareness of its employees and it consists of the honor, ethical values, working methods of the administration, system for assigning writerity and the necessary procedures for organizing and growing the workers in a business association.
– Risk assessment, which contains the detection and examination of the risks which might be most likely to pose a menace 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.
– Data and communication which are accountable for all news related to the operation and funds and many others of a business that helps in its smooth running
– Monitoring of internal controls which factors out any shortage in its quality making sure it is remedied so the system can 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 components, which are process orientated. Moreover, the COBIT incorporates the system of development, operation, delivery, and implementation. COBIT helps strengthens assessment, understanding and train of appropriate inside controls. COBIT additionally, provides a good framework for risk administration and improves communication among management, customers and auditors concerning IT governance. Accordingly, COSO focuses on monitoring and evaluation, which can also be one of the COBIT’s domains. Due to this fact, COSO and COBIT build collectively a robust evaluation of IT primarily based systems and processes.
For instance, the company is implementing a new system. Due to this fact, 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 also assist in configuration of two different systems (new with an existing accounting system). COSO would help to guage the financial part and risk. Moreover, the COSO additionally will review all accounting associated points and the COBIT will assist in technological integration and it also will assist with delivery and assist of the implementation.
The mixture of COSO and COBIT will probably be very useful for AFM Corporation. All evaluation and documentation of processes might be scoped by the COSO framework and all technological issues could possibly be reviewed in particulars by the COBIT framework. COBIT would additionally assist with the advancedity of software system. Alternatively, the COSO will support control activities and the COBIT will help in detailed monitoring and evaluating.
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