a Electronic Data Interchange (EDI) is a format used to exchange business information
from computer to computer rather than using paper documentation and having to hand
deliver it. This allows information to be shared at a faster pace which in return allows
work to get done quicker. Not only is EDI faster for communication purposes but it also
saves companies money, data transfer reduces errors, and the integration improves
traceability and reporting (IBM).
a Image-processing systems scan and convert documents into electronic images to create
storage. By having this electronic evidence, the auditor is able to use the electronic
information as competent evidence. It allows easy access to documents that may be
needed by an audit (Williamson, 1997). a
a For the two different forms explained above, auditors would consider the evidence that
is created from either of the two to be relevant and reliable (Messier, 2017). The
documentation on both would be the same as written documents for the audit to use as
evidence, however it is just transformed into an electronic form. This makes the
documentation more reliable because as long as the auditor is somewhere that has a
computer, they will be able to pull up any of the evidence they may need.
References:
IBM. (n.d.). What is EDI: Electronic Data Interchange? | IBM. Www.ibm.com.
https://www.ibm.com/topics/edi-electronic-data-interchange
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, Louise. (February 1, 1997). The Implications of Electronic Evidence. The
Implications of Electronic Evidence (journalofaccountancy.com)
