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+--- Thread: why COSO? (/thread-why-coso)
why COSO? - dotkom - 09-25-2009
Dear all,
having gone through the SBP's guidelines of 2004 (and other circulars issued time by time), COSO and SOX...one question is in my mind that our auditors couldnt respond...why COSO is being adopted by Banks in Pakistan? (even if you go through SBP guidelines...you'll come to know that its borrowed from COSO)
does anybody know the reason <b>why COSO is being taken as a framework (directly or indirectly) for implementation of internal control system? why not some other framework?</b>
a friend of mine said "COSO suits banks better than any other framework"...if this is the case then my question is...<b>how and why COSO suits better?</b>
thanks and regards
- dotkom - 09-28-2009
roll
well...the post had so many hits but no reply...i believe i havent posted the wrong topic on a wrong forum
come on guys
could anybody help???
- dotkom - 09-29-2009
well...[V]
it makes me feel that i must have posted a wrong question on a wrong forum
Admin/Mod guys lock this topic [(]
- kamranACA - 09-29-2009
Dotkom
In fact your question calls for an answer without any boundries. At forums, I suggest very relevant, concise and specific questions should be asked.
You are asking why not other frameworks are suiting best to the banking sector but are not providing any example of such other suggested frameworks to get a comparison or SWOT in response.
Do you expect people to list down the comparative frameworks and then tell you what merits COSO has over others? I mean this is not a question requiring answer; rather the question calls for a thesis. This is simply sort of the question that "why IFRSs is considred better than rest of the accounting frameworks developed by different standard setters in the world like U.S. or Newzealand or Austrailia or U.K.etc?
Have you searched for the background of COSO, what it actually is, what this abbreviation stands for, why and how it was developed, who was behind its development and what it in fact entails?
I guess certainly not! So you first take a bit of its understanding and then come here to ask a relevant question.
Besides the above, will you please simply quote examples of some of other such frameworks found in the world specially banks?
I may also mention that in Pakistan some companies other than banking sector have also started working on COSO framework (after some customization) and are thinking on its implementation. You will sooner or later see it growing across the sectors. It's my guess.
Counting on you!
Regards,
Kamran.
- Mujahid - 09-29-2009
O chalo yaar mein bata deta hoon. COSO use karne se kosa nahee jata. [D] bas issi liye use hota hai. Khush? [P]
- dotkom - 09-30-2009
) thanks kamran...at least someone responded
well... your "certainly not" is not certain, certainly ) khair...jokes apart
have gone through a couple of areas and know "a little bit" of everything, e.g., COSO, COCO, SOX, ICAAP, basel (credit related and some operational areas), guidance on control (by CICA), several notes of Basle committee, turnbull, cadburry etc. etc. (i did mention in my first post that i've that i've gone through some related areas...not to be ostentatious but just to intro myself...me working with a bank as a senior executive and been involved reviewing the policies and procedures of the bank...but i still feel myself a learner and thats why i am here asking an elementary level question)...so would be grateful for your help (i hope someone here will surely do)
yeah! you are right that it is an open question (i correct it and put on the same again but in bullets) but my brother i didnt ask for a comparison (no offense)...
Q#1) why COSO is being adopted by Banks in Pakistan? (not asking for the need but for the reason to opt this very framework, as i mentioned "directly or indirectly" and as kamran mentioned "after some customization")
Q#2) how and why COSO suits better? (if and only if the reason of adopting COSO is because "COSO suits banks better than any other framework")
i hope now my questions are a little more clearer and simpler
thanks and regards,
ps no offense to anybody at all, i regret if my second "it makes me feel that i must have posted a wrong question on a wrong forum" caused anybody feel bad
pps i believe we all are professionals here, so would be very thankful for a relative post or points, thanks again to kamran for breaking the ice
- Mujahid - 09-30-2009
dum ko tail likh k paish kia hai. [D]
- kamranACA - 09-30-2009
Dear
I accept a bit of stupidity in writing "certainly not" where "I guess" was already in place as an outright reservation. Anyway! If you say, it would certainly not be a certain situation.
The very first COSO implementation in Pakistan has been done and its adherenance got audited by one of our client. If you are at a bank you must be knowing it so please don't mention the name here, if you are aware. The very first audit report in Pakistan on COSO implementation was issued by us.
I hope I would be able to add few sentences on this thread but am still carrying similar reservations on your query(s). Anyway (again). I will shortly be replying short answers to your questions.
However, can you please let me know other frameworks in comparison to COSO? This is very crucial and a must question before proceeding further. You cannot mention Cadburry or SOX or BASEL (I hope) because there is a difference.
I hope it will be a good discussion and increase my knowledge.
By the way nice knowing and meeting you. Where are you located?
In the end I must say that unfortunately in most of cases the so-called ice has to be broken by me. That's why I have requested all senior and qualified forum members to rejoin the forum activity. I mean the guys who were very active and have now left the forum.
Dotkom, rest assured we will discuss this matter in detail in couple of days.
Regards,
Kamran.
- awaisaftab - 09-30-2009
As per my knowledge COSO is a non profit organization which does research on Audit.
- dotkom - 09-30-2009
hmm, so you are ... (edited) right? 'coz ... (edited) signed that report as per my knowledge (i've been with a firm (edited), left in 2002)
well...i did mention COCO, guidance on control by CICA and notes of Basle Committee as well as ICAAP (though i did mention that i never asked for a comparison)
and i've been going through several threads of the forum and am a little familiar with writing/communication style of Mujahid (shahbaz...right?), kamran and awais
so...anybody else wants to add some buy-in?
- dotkom - 09-30-2009
)
ps .... (edited)
- dotkom - 09-30-2009
edit??? ummmm ok but [?]
khair, i'll do, no prob...which one? that partner's name? or my guess? or the firm's name? or all?
- dotkom - 09-30-2009
done with editing
- kamranACA - 09-30-2009
Dear
Thank yor for editing. Is there any Khan Sb? I have lots of friends there but am not aware of any Khan sb. Further, do you remember there were two firms involved, not one?
Now don't again start mentioning anything in black and white. You are a dangerous buddy in so far as expressing the things on forums. By the way I visited that blog as well. Why not to have a cup of coffee with me at my office? Do you like coffee? Black or brown? No? Ok, minutemaid will serve the purpose; or a working lunch at least. Think on it.
Regards,
KAMRAN.
- Astute Accountant - 10-01-2009
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by kamranACA</i>
<br />Dear
Thank yor for editing. Is there any Khan Sb? I have lots of friends there but am not aware of any Khan sb. Further, do you remember there were two firms involved, not one?
Now don't again start mentioning anything in black and white. <b>You are a dangerous buddy in so far as expressing the things on forums. By the way I visited that blog as well. Why not to have a cup of coffee with me at my office? Do you like coffee? Black or brown? No? Ok, minutemaid will serve the purpose; or a working lunch at least. Think on it.</b>
Regards,
KAMRAN.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hahaha bhai!!! Only dangerous people are "best suited people" for you. BTW I'm also dangerous... You know na??? -)
So shall we come to your office for coffee/lunch or ... ehm ehm D?