Question

discuss on COSO and COBIT frameworks for Internal controls

Answer 1

solution

"The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a joint activity to battle corporate misrepresentation. It was built up in the United States by five private segment associations, devoted to direct official administration and administration substances on significant parts of authoritative administration, business morals, inside control, venture chance administration, extortion, and money related revealing. COSO has set up a typical inside control show against which organizations and associations may evaluate their control frameworks. COSO is upheld by five supporting associations, including the Institute of Management Accountants (IMA), the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), and Financial Executives International (FEI)...

... COSO was framed in 1985 to support the National Commission on Fraudulent Financial Reporting (the Treadway Commission)."

"COBIT (Control Objectives for Information and Related Technologies) is a decent practice structure made by global expert affiliation ISACA for data innovation (IT) the board and IT administration. COBIT gives an implementable "arrangement of powers over data innovation and composes them around a sensible structure of IT-related procedures and empowering influences."

ISACA first discharged COBIT in 1996, initially as a lot of control targets to help the money related review network better move in IT-related conditions. However, continued creating as

Inside IT concentrated situations, CobiT is a generally perceived control structure that is developing as the supplemental system of decision to the Treadway Commission's Committee of Sponsoring Organizations (COSO) assessment system (IT Governance Institute, 2005; see likewise Colbert and Bowen, 1996; Netegrity,2004; Ramos, 2004). Fedorowicz and Gelinas (1998) express that CobiT supplements the COSO system for evaluating the inner controls and generally speaking corporate administration of an association. In like manner, Lainhart (2001, 19– 20)states that CobiT is an instrument that "enables endeavors to adjust IT hazard and interest in controls." These notions are resounded by Dennis Reynolds, KPMG accomplice and leader of the Financial Services Risk Governance in London (KPMG, 2003 13),

I think the COBIT structure is better as is likewise expressed in International Journal of Accounting Information Systems (8 [2007] 240– 263) "The Committee of Sponsoring Organizations of the Treadway Committee (COSO) assessment structure is suggested by the Commission as a suitable reason for the executives' evaluations. Most global associations are embracing the COSO structure for their assessment, yet are enhancing its control criteria with those prescribed by the Control Objectives for Information and related Technology (CobiT)."