This article will help you to understand some relatedities and differences between two 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 mostly, fewer complexes, without a lot 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 corresponding to effectiveness, efficiency, integrity, availability, compliance, confidentiality and reliability of information. These are the foundations for the management objectives of COBIT.
As recognized by the COSO agenda, the process of internal management includes of five components. These make up for a highly competent framework for investigating and evaluating the system of internal control that is put to make use of in a business. These components are stated under:
– “Management Environment, this deals with setting the character of a business and influencing the management awareness of its employees and it includes the dignity, moral values, operating methods of the administration, system for assigning writerity and the mandatory procedures for organizing and developing the staff in a enterprise association.
– Risk assessment, which contains the detection and examination of the risks which can be most likely to pose a menace to attaining desired objectives.
– Management Activities, these are the rules and regulations which assist in guaranteeing that the orders of the administration are satisfactorily carried out.
– Information and communication which are chargeable for all news associated to the operation and finances etc of a enterprise that helps in its smooth running
– Monitoring of inside 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 investment
– Delivery and help
– Monitoring and evaluation.
COBIT focuses on IT components, which are process orientated. Moreover, the COBIT contains the system of development, operation, delivery, and implementation. COBIT helps strengthens evaluation, understanding and train of appropriate internal controls. COBIT additionally, provides a very good framework for risk administration and improves communication amongst administration, customers and auditors relating to IT governance. Accordingly, COSO focuses on monitoring and evaluation, which is also one of the COBIT’s domains. Subsequently, COSO and COBIT build collectively a powerful evaluation of IT primarily 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 might be very helpful to span the system on technology based processes. CABIT would also assist in configuration of totally different systems (new with an existing accounting system). COSO would help to judge the monetary part and risk. Moreover, the COSO additionally will assessment all accounting associated points and the COBIT will assist in technological integration and it also will help with delivery and assist of the implementation.
The combination of COSO and COBIT will likely be very helpful for AFM Corporation. All analysis and documentation of processes might be scoped by the COSO framework and all technological points might be reviewed in details by the COBIT framework. COBIT would also help with the complexity of software system. Then again, the COSO will assist control activities and the COBIT will assist in detailed monitoring and evaluating.
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