Question

What is the relationship between COSO and COBIT? What is the impact on the accounting and auditing profession, and discuss all dimensions of the topic

Answer 1

Relationship between COSO, COBIT 5, and AICPA’s Trust services frameworks:

All the frameworks have the same relationship regarding the IT (information technology) controls and it describes the functions as follows:

COSO (Committee of Sponsoring Organization):

• This is a framework which is broadly classified and it describes about the components of internal control.

• This does not clearly explain about the IT controls.

• This internal control is authorized by the board of directors, management and other persons to provide the assurance among the following objectives:

o Protection of assets

o Reliability on financial reporting

o Compliance with laws and regulations

COBIT 5 ( Control Objectives for Information and Related Technologies) :

• This is global framework that governs the IT and it follows the best practices to effectively manage the organization investment in IT.

• This provides a view for end-to-end business that provides the central role of information and technology to create the value for enterprise.

AICPA ( American Institute of Certified Public Accountants) :

This framework is narrower in goals and better than the COBIT because it focuses only on the IT controls.

• This focusing helps to improve the system reliability.