Electronic Data Interchange (EDI) is when all transaction and
document are created and transmitted electronically between
businesses. Full business process cycles can be performed and
completed without being recorded on paper. Purchase orders and
Invoices are created on a standardized digital platform and updates
are processed against them electronically throughout their life cycle.
Image Processing Systems take paper document and convert them to
digital images. This is like a scanner that, in so many words, scans a
picture of the document and stores it as a digital image, like a PDF.
b These forms of electronic data can be used by Auditors for
audit evidence (Messier et al, 2017). As the world move progressively
into this digital age, I would believe that most of the Auditor’s
consideration of evidence would involve one or both of these forms
of electronic data. Many companies in today’s world do have green
initiatives and work towards a paperless functioning office
environment. I’ve worked at companies that stringently limit the use
of printers, and I’ve worked at companies that take every single
paper invoice coming in and scan it to a digital platform. The
company I worked for still filed and saved the paper invoice.
However, as mentioned in the Journal of accountancy, source
documents may or may not be retainable after conversion
(Williamson, 1997). Auditors can use control to detect any alterations
or fraudulent activities.
Williams A. L. (1997, February 1). The Implications of Electronic
Evidence. Journal of Accountancy.
b
https://www.journalofaccountancy.com/issues/1997/feb/implic.htm
l
Messier, W. F., Jr., Glover, S. M., & Prawitt, D. F. (2017). Auditing &
assurance b services: A systematic approach
(10th ed.). New York, NY: McGraw-Hill Education.
