10-02-2009, 12:15 AM
As Kamran pointed, Your question is very open and would be better repsonded if its scope is further refined. Its easy to compare a particular framework against other. Anyway here are my two cents.
All banks have to adopt some framework for its internal control. The best practice is to adopt a the COSO framework of the Treadway Commission's Internal Control--Integrated Framework as COSO is the most popular framework adopted by the entities across the globe and is popular for 404 compliance evaluation. COCO is mainly restricted to Canada, while the use of COSO is widespread. The Institute of Internal Auditors also prefers COSO over other frameworks. COSO framework shares most of its elements with other frameworks such as COCO, Cadbury, however there are certain differences as well. COCO includes the scope of control some particular aspects of management that COSO excludes objective setting, strategic planning and risk management, and corrective actions. COCO does exclude decision making from the scope of control.
The major advantage I see in COSO framework is its relative flexiblility against other frameworks. The COSO framework describes how each internal control element can be customised to smaller and less complex organizations. For example, if COSO is used as a best practice, its five following elements of internal control can be easily tailored to meet an organization's specific needs.
Looking forward to a good discussion on the topic.
All banks have to adopt some framework for its internal control. The best practice is to adopt a the COSO framework of the Treadway Commission's Internal Control--Integrated Framework as COSO is the most popular framework adopted by the entities across the globe and is popular for 404 compliance evaluation. COCO is mainly restricted to Canada, while the use of COSO is widespread. The Institute of Internal Auditors also prefers COSO over other frameworks. COSO framework shares most of its elements with other frameworks such as COCO, Cadbury, however there are certain differences as well. COCO includes the scope of control some particular aspects of management that COSO excludes objective setting, strategic planning and risk management, and corrective actions. COCO does exclude decision making from the scope of control.
The major advantage I see in COSO framework is its relative flexiblility against other frameworks. The COSO framework describes how each internal control element can be customised to smaller and less complex organizations. For example, if COSO is used as a best practice, its five following elements of internal control can be easily tailored to meet an organization's specific needs.
Looking forward to a good discussion on the topic.
