Internal Controls Are Necessary For Organizations Of Any Nature

1488 WordsNov 26, 20166 Pages
Internal controls are necessary for organizations of any nature and particularly those that are numbers driven such as accounting, and finance. They safeguard assets, maintain records, prepare and promote financial reports and operational efficiency, adhere to management and ensure compliance with regulations. “Information systems encounter serious security threats that may arise from the weakness of the internal controls and/or the nature of the competitive environment as the need and dependency on information increases” (Hayale & Abu- Khadra, 2006). With internal controls, organizations can bring out value and not just lessen their risk. And this is where becomes applicable. Cobit as a framework ensures that internal controls are effective and efficient. Cobit is the generally accepted internal control framework for IT. (ISACA, 2016). Cobit is the perfect framework for internal controls because it supplies guidance about selecting controls the fit the goals of an organization and its IT structures. It also targets specific goals as a vital aspect of building a solid internal control environment. Cobit meets shareholders requirements, covers the end to end enterprise, acts as a single integrated framework using a holistic approach and separates governance from management. Additionally, Cobit as a framework also enables a system to audit itself. For internal controls, Cobit is extremely effective due to its IT resources, process, and domain to generate information. Cobit
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