Integrating COBIT and COSO Frameworks for Fraud-Resistant Banking Information Systems: A Unified Model for Enhanced Audit Reliability

Posted: Jul 10, 2020

• Hamza Shahbaz Ahmad
  University of Missouri Kansas City
• Hira Naveed
  National University of Sciences and Technology (NUST)
• Bilal Ahmed
  Lahore University of Management Sciences (LUMS)

Abstract

This research develops and validates an integrated framework combining COBIT (Control Objectives for Information and Related Technologies) for IT governance and COSO (Committee of Sponsoring Organizations) for internal control to create fraud-resistant banking information systems. Through systematic analysis of 143 banking institutions across North America and Europe from 2017 to 2019, this study demonstrates that the integrated COBIT-COSO model significantly enhances audit reliability and fraud detection capabilities. The proposed framework addresses critical gaps in existing approaches by aligning IT governance objectives with internal control activities through a unified risk assessment methodology. Empirical results indicate that banks implementing the integrated framework experienced 54% improvement in fraud detection rates and 63% reduction in false positives compared to institutions using either framework in isolation. The research introduces a novel maturity assessment tool that quantifies integration effectiveness and provides actionable guidance for implementation. Findings reveal that successful integration requires organizational commitment, cross-functional collaboration, and continuous monitoring mechanisms. This study contributes to both academic literature