Question

COBIT was developed to:

1) provide guidance to managers, users, and auditors on the best practices for the management of information technology
2) identify specific control plans that should be implemented to reduce the occurrence of fraud
3) specify the components of an information system that should be installed in an e-commerce environment
4) suggest the type of information that should be made available for management decision making

Answer 1

COBIT was developed to guide managers, users, and auditors on IT management best practices. It is part of an overarching goal to align IT with business objectives and mitigate risks, indirectly supporting goals similar to those of the Sarbanes-Oxley Act, such as reinforcing confidence in corporate financial reporting.

Step-by-step explanation:

COBIT, which stands for Control Objectives for Information and Related Technology, was developed primarily to provide guidance to managers, users, and auditors on the best practices for the management of information technology.

This framework helps organizations ensure that IT is aligned with their business goals, delivers value, and manages risks appropriately. The best practices outlined in COBIT cover various facets of IT management, including strategy, security, risk management, and data governance.

COBIT does not specifically focus on fraud, but the controls it recommends can help reduce the risk of fraud by improving governance and oversight.

The notoriety of major accounting scandals involving corporations like Enron, Tyco International, and WorldCom led to the creation of the Sarbanes-Oxley Act in 2002. The government designed Sarbanes-Oxley to increase confidence in financial information provided by public corporations and to protect investors from accounting fraud.

While Sarbanes-Oxley and COBIT are distinct, they share a common purpose in enhancing the reliability of financial reporting and the governance of IT operations.