This article will aid you to understand some similarities and variations between frameworks: COSO and COBIT. Some fundamental 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 a lot technical points and COBIT is more comprehensive, process-orientated, risk, management needs, and it relates more to technical issues. COBIT covers quality and security requirements such as effectiveness, effectivity, integrity, availability, compliance, confidentiality and reliability of information. These are the foundations for the management objectives of COBIT.
As acknowledged by the COSO agenda, the process of inner 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 components are acknowledged under:
– “Management Atmosphere, this offers with setting the character of a enterprise and influencing the management awareness of its workers and it contains the honour, ethical values, working strategies of the management, system for assigning creatority and the required procedures for organizing and creating 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 threat to attaining desired objectives.
– Management Activities, these are the foundations and rules 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 on 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 investment
– Delivery and support
– Monitoring and evaluation.
COBIT focuses on IT elements, which are process orientated. Moreover, the COBIT incorporates the system of development, operation, delivery, and implementation. COBIT helps strengthens evaluation, understanding and train of appropriate internal controls. COBIT additionally, provides a great framework for risk administration and improves communication amongst administration, customers and auditors relating to IT governance. Accordingly, COSO focuses on monitoring and evaluation, which can be one of the COBIT’s domains. Due to this fact, COSO and COBIT build collectively a robust evaluation of IT based systems and processes.
For instance, the corporate is implementing a new system. Therefore, the business can take an advantage of COBIT and COSO. In this case, COBIT can be very helpful to span the system on technology based mostly processes. CABIT would additionally help in configuration of completely different systems (new with an existing accounting system). COSO would help to evaluate the financial half and risk. Moreover, the COSO also will evaluate all accounting related facets and the COBIT will help in technological integration and it also will assist with delivery and support of the implementation.
The mixture of COSO and COBIT can be very useful for AFM Corporation. All analysis and documentation of processes may very well be scoped by the COSO framework and all technological points might be reviewed in details by the COBIT framework. COBIT would also assist with the advancedity of software system. On the other hand, the COSO will assist control activities and the COBIT will help in detailed monitoring and evaluating.
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