While reading on EDI and image-processing one thing was very evident, there are many
pros and cons to each. There has been years of trial and error and plenty of research for
companies to understand enough about an ever-changing world to make it work best for
their company. I found an article from 1998 and intentionally decided to use something this
old just to show the same things that were plaguing the full use of these techs in auditing is
still as relevant today.
The implication of EDI back then was understanding how a company was utilizing this and
being able to adjust audit procedures accordingly. One other implication that EDI faced then
and can still become an issue today is "system might contain errors and compute an incorrect
optimum order amount, leading to a dispute if the client ships too few or too many raw
materials" (Helms, Mancino, 1998). By using the electronic system for tracking supplies and
vendors utilizing it as confirmation on material usage there comes the issue of the errors that
can occur within the system and inaccurate information.
The implications of image-processing systems can stem from trusting the authenticity of the
documents. As an auditor is there any way to test the validity or accuracy on them? The
textbook states "Two issues are important in discussing inspection of records or documents:
the reliability of such evidence and its relationship to specific assertions" (Messier, et al 2019).
Along with both EDI and image-processing there will always be the concern over security.
Will there ever be enough understandable security on the digital world to think that all your
company information is truly safe.
As an auditor understanding the ways a company uses these digital forms, to be able to see
real time data of continuous auditing within the systems, and quicker access to data exchange
with the company are just some of the ways that an auditor must view and consider the
References
Messier, W., Glover, S., & Prawitt, D. (2019, October 19). Auditing &
Assurance Services: A systematic approach. McGraw Hill. Retrieved
September 15, 2022, from
https://www.mheducation.com/highered/product/auditing-
assurance-services-systematic-approach-messier-jr-
glover/M9781259969447.html
Helms, G., & Mancino, J. (1998, March 31). The electronic auditor.
Journal of Accountancy. Retrieved September 15, 2022, from
https://www.journalofaccountancy.com/issues/1998/apr/helms.htm
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