Frameworks for Compliance: COSO and COBIT

Abstract

Although each organization is unique, culturally and operationally, and the financial sector has a great variety in the way its organizations operate and do business, nevertheless there are fundamental features that can be abstracted and considered to be common to all. The Act refers to organizations that are publicly listed on the US stock exchange. Our interest here is in financial services organizations. The PCAOB goes further in its assumptions, and establishes a key factor: any assertions on controls are no longer voluntary, but mandated by the Act, and they must be backed by evidence derived from a recognized internal control framework. It then makes specific reference to a specific framework, and insists that organizations should either adopt this control framework, or have frameworks that cover the competences through internal controls defined within that recommended framework. This is a key factor for compliance with the Act, and the reference model is that of COSO.