COSO and COBIT Committees
The Committee of Sponsoring Organizations (COSO) is aimed at achieving the organization’s goals in strategic, operational and accounting reporting statements, and in the direction of compliance with the laws and rules established for the enterprise. All these partially overlapping aspects are highlighted in it in terms of protecting the organization’s resources. Through the use of the Control Objectives for Information and Related Technology (COBIT), IT leaders transform business objectives into clear and understandable IT development plans.
The main advantage of COBIT is its completeness and intelligible, practical recommendations and tools with which a corporate information technology management system is built. According to Gantman and Fedorowicz (2016), COBIT and COSO focus on internal control and a specific target group and pay great attention to the creation and evaluation of internal control means.
Control System
The internal control system consists of five interconnected components: control environment, risk assessment, control actions, information and communication, and monitoring. The control environment is the most crucial component, as it provides the basis for other constituent elements. It involves such factors as management philosophy and a leadership style, rules and methods of work with labor resources, honesty and spiritual qualities of employees, organizational structure, and leadership of the board of directors.
Internal and external pressure motivates accountants and management to continue developing and improving the quality of interior control concepts. Accountants are concerned that the committees focus on the notion of reasonable assurance in connection with internal control, which guarantees the organization will achieve its goals and improve financial and operational information. Integration of audit skills and knowledge of the information system, as well as an understanding of the impact of information technology on the audit processs, are essential for internal auditors.
Reference
Gantman, S., & Fedorowicz, J. (2016). Communication and control in outsourced IS development projects: Mapping to COBIT domains. International Journal of Accounting Information Systems, 21, 63-83.