This article will enable you to 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-primarily based, fewer complexes, without a lot technical issues and COBIT is more complete, process-oriented, risk, management needs, and it relates more to technical issues. COBIT covers quality and security requirements comparable to effectiveness, efficiency, integrity, availability, compliance, confidentiality and reliability of information. These are the foundations for the management targets of COBIT.
As acknowledged by the COSO agenda, the process of inside control contains of 5 components. These make up for a highly competent framework for investigating and evaluating the system of inside management that’s put to use in a business. These components are acknowledged under:
– “Control Environment, this offers with setting the character of a enterprise and influencing the management awareness of its employees and it includes the consideration, ethical values, operating strategies of the administration, system for assigning writerity and the required procedures for organizing and developing the workers in a business association.
– Risk assessment, which includes the detection and examination of the risks that are most likely to pose a menace to attaining desired objectives.
– Control Activities, these are the foundations and regulations which help in guaranteeing that the orders of the management are satisfactorily carried out.
– Information and communication which are chargeable for all news related to the operation and finances etc of a enterprise that helps in its smooth running
– Monitoring of inner 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 help
– Monitoring and evaluation.
COBIT focuses on IT elements, which are process orientated. Moreover, the COBIT accommodates the system of development, operation, delivery, and implementation. COBIT helps strengthens assessment, understanding and train of appropriate inner controls. COBIT also, provides a very good framework for risk management and improves communication among administration, customers and auditors relating to IT governance. Accordingly, COSO focuses on monitoring and analysis, which can also be one of many COBIT’s domains. Subsequently, COSO and COBIT build collectively a strong assessment of IT based systems and processes.
For instance, the corporate is implementing a new system. Therefore, the enterprise can take an advantage of COBIT and COSO. In this case, COBIT will be very helpful to span the system on technology based processes. CABIT would also help in configuration of completely different systems (new with an present accounting system). COSO would help to evaluate the monetary half and risk. Moreover, the COSO additionally will evaluation all accounting related points and the COBIT will help in technological integration and it additionally will assist with delivery and help of the implementation.
The combination of COSO and COBIT will likely be very beneficial for AFM Corporation. All evaluation and documentation of processes could be scoped by the COSO framework and all technological issues may very well be reviewed in particulars by the COBIT framework. COBIT would also assist with the advancedity of software system. On the other hand, the COSO will support control activities and the COBIT will assist in detailed monitoring and evaluating.
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