EDI (Electronic Data Interchange) and image processing systems is a communication system for
exchanging business data electronically. The use of paper is eliminated. With the use of EDI,
auditors can send and receive all information electronically instead of making copies of support
provided by clients. Additionally, using image processing, an image is converted into a digital
format.
In Chapter 5, it is noted that the auditors use audit evidence information to arrive at the
conclusion on which the audit opinion is based (Messier, Glover & Prawitt, 2017). Audit
evidence must be both sufficient and appropriate in order to support the opinion rendered
(Messier, Glover, & Prawitt, 2017).
In recent years, many companies are transitioning to an electronic base. As an auditor, it is
essential to understand how electronic data can affect audit evidence and documentation.
Auditors might encounter an issue with electronic support in regards to errors that could range
from data transmission errors to deliberate manipulation data (Williamson, 1997).
Furthermore, auditors need to verify if the support is credible and no signs of alteration.
Electronic data’s negative aspect is that it is difficult to note an any signs of modifications.
Thus, auditors should investigate the documentation provided by the client thoroughly.
Additionally, auditors will need to address the scope of the procedures necessary to ensure
competence of evidence and understand how electronic evidence is extracted from the
information system (Williamson, 1997).
References
Messier, W. F., Jr., Glover, S. M., & Prawitt, D. F. (2017). Auditing & assurance services: A
systematic approach (10th ed.). New York, NY: McGraw-Hill Education.
Williamson, A. Louise. (1997, Feb 1). The Implications of Electronic Evidence. Retrieved from
Journal of Accountancy:
https://www.journalofaccountancy.com/issues/1997/feb/implic.html
