The impact of an IT governance framework on the internal control environment

Abstract

Purpose The purpose of this paper is to analyze how an IT governance framework [Control Objectives for Information and related Technology (COBIT)] influences the control environment and the internal control system. In particular, it aims to illustrate how the COBIT’s structure and processes impact on the seven categories of factors that compose the control environment. Design/methodology/approach This paper aims to highlight how an IT governance framework with its processes enables to improve the control environment assessment and implementation. Findings The analysis indicates that the implementation of the COBIT framework provides some indications for managers and auditors, which must implement or assess internal control system. Practical implications The adoption of the framework allows managers to focus effectively on integrating, aligning and linking processes. This improves the understanding of the key aspects connected to the control environment. In addition, the adoption of the framework allows overcoming some limitations regarding the Committee of Sponsoring Organizations framework. Originality/value This paper addresses an area of relevance to both practitioners and academics. This analysis focuses on Accounting Information Systems themes and, through the examination of an IT governance framework, suggests solutions and tools than can help managers and auditors to address the control environment assessment.

A Comparison of the Main ERM Frameworks: How Limitations and Weaknesses can be Overcome Implementing IT Governance

“…Tuttle and Vandervelde (2007) argue that risk management frameworks does not identify control objectives at a level of specificity sufficient to design detailed audit tests. This is confirmed also in other research (Huang et al, 2011;Rubino & Vitolla, 2017a). Power (2009) states that COSO ERM do not ensure the understanding of the risk concept and its implications is weak.…”

“…Implementing risk management is a complex activity that varies from company to company based on a series of elements such as corporate culture in terms of control, the existence of a well-defined organizational structure, the provision of appropriate procedures and company policies, the existence of an effective action carried out by the corporate governance bodies, the presence of managerial skills and so on (Rubino & Vitolla, 2012a;Rubino et al, 2017a;Bogodistov & Wohlgemuth, 2017;Agarwal & Kallapur, 2018). Therefore, the analysis of all these elements and many others cannot be contained in a simple guideline, especially if this is very small or limited such as the main risk management frameworks.…”

“…Over the past few decades, the ability to pursue the goals set by companies, is becoming linked to the quality and availability of information and the systems that manage it (Javaid & Iqbal, 2017). At the core of all companies' processes, information should be available to management to turn it into effective and timely decisions (Rubino et al, 2017a). IT is increasingly being recognized and used as a tool to assist with managerial activities that involve decision-making for complex organizational problems (Chapman, 2005, Liew, 2015.…”

“…On the one hand, it incorporates and spreads strategic business objectives through a more operational and procedural language, as well as those linked to costs, risks and compliance. On the other, measures and communicates to the corporate bodies the performance achieved by identifying any anomalies found in the company processes (Rubino et al 2017a). Instead, IT alignment means linking business and the IT plan i.e.…”

Teknologi Informasi Memoderasi Pengaruh Pengendalian Intern dan Kompetensi Sumber Daya Manusia Pada Kualitas Laporan Keuangan

“…Efektivitas sistem pengendalian intern sangat penting untuk mencegah terjadinya tindakan penyelewengan danuntuk meningkatkan kualitas dari laporan keuangan. Sistem pengendalian internal yang efektif dipastikan oleh identifikasi dan evaluasi lingkungan kontrol yang merepresentasikan kesadaran kontrol keseluruhan dari suatu entitas (Rubino, et al, 2017). Dalam sektor publik, PP No.…”