Electronic data interchange (EDI) is the concept of communicating
information between two parties, such as between auditors and
clients, or from auditor to auditor, through the means of technology.
This also allows for the exchange of electronic signatures, invoices,
and more, in a way that is confidential and secure. (Leech, Dunne, &
Malone, 2022) Image-processing systems often work alongside EDI
systems, as they allow for the conversion of physical images
electronically. A common example of this system would be Adobe,
which allows for the conversion of scanned images, where you can
then store the image in your computer and exchange it with others
virtually.
Looking at our final project, Earthwear Clothier's utilizes an EDI
system. They use this for the purchasing of goods online in a safe and
secure manner. Using this, they can exchange orders and invoices
with suppliers completely electronically, eliminating the burden and
risks associated with using large amounts of paper and completing
the process manually. (Messier, Glover, & Prawitt, 2019) This system
makes it easier for auditors to gather the data needed to conduct
their review, as well. It is much simpler to review virtual data than it is
to sort through large volumes of paper. This method also simplifies
the process of sample selecting, as the auditors can sort the data and
extract only what they need.
In the audits that I conduct, image-processing systems are essential.
My company utilizes Adobe to it's fullest extent. Occasionally, I do
receive data in the form of hard copies. From there, my first task is to
scan the documents into my computer and convert the scanned
documents into an Adobe PDF. For auditors, this makes it much
easier to call out certain parts of the documentation and leave notes
where needed, as well as store the information and incorporate it into
the virtual audit program. My company is working to reduce all paper
usage to near zero, so having an understanding of EDI systems is
essential for all departments - not just internal audit.
References
Messier, W., Glover, S., Prawitt, D. Auditing & Assurance Services: A
Systematic Approach. McGraw-Hill Education.
