Electronic data exchange or EDI refers to intercompany
communication in which business documents are exchanged in a
standard format. It is an important component of electronic
commerce. In order to ensure the success of EDI, it is important for
the trading partners to agree to leverage a particular data format for
conducting business transactions in an effective manner (Josiah &
Izedonmi, 2013). EDI provides businesses freedom from paper. For
instance, traditional documents such as invoices and purchase orders
do not exist in the form of papers. In EDI transactions, information of
businesses moves from one computer application of an organization
to another computer application.
Implications of EDI
EDI has significant implications for the auditor's consideration of
audit evidence. The use of EDI can make tasks easier for the auditors
as they no longer have to deal with a lot of papers. However, as no or
very less paper document exists, the auditor will have to focus on the
computer system. The auditor needs to gain a comprehensive
understanding of how the client conducts business with the use of
EDI. After understanding that, they will have to make changes to their
audit procedures and plans accordingly (Josiah & Izedonmi, 2013).
The auditors must become familiar with the use of EDI and possess
basic IT skills to better understand the integration of the business
plans with the EDI systems for future growth. The auditors also need
to use specific audit procedures to ensure the effectiveness and
adequacy of the internal controls of the clients.
Image-processing Systems
In the digital era, the application of image-processing systems is
becoming popular. Image processing systems are the systems that
involve the processing of images taken by a digital scanner or digital
camera. Computer systems are used in order to process digital images
(Salehin et al., 2020). The core aim is to improve and enhance the
visual quality of the images. It helps in improving the raw images
taken by the scanners or cameras.
Implications of Image-processing Systems
Image processing systems also have several implications for the
auditor's consideration of audit evidence. One of the important
implications of image processing systems is that it provides the
auditors with a clearer image of the evidence. It will help the auditors
to perform auditing in a more efficient and accurate manner (Patel &
Shah, 2022). It can help in eliminating potential confusion or chances
of error owing to the lack of clarity of the image. It allows the auditors
to review the documents and images more effectively and produce
accurate reports. It can also help in improving the efficiencies of the
auditors.
References
Josiah, M., & Izedonmi, P. F. (2013). Critical issues in international and
electronic audit evidence. International Journal of Management
Sciences and Business Research, 2 (3), 1-14.
Patel, S., & Shah, M. (2022). A Comprehensive Study on Implementing
Big Data in the Auditing Industry. Annals of Data Science, 1-21.
Salehin, I., Talha, I. M., Saifuzzaman, M., Moon, N. N., & Nur, F. N.
(2020, October). An advanced method of treating agricultural crops
using image processing algorithms and image data processing
systems. In 2020 IEEE 5th International Conference on Computing
Communication and Automation (ICCCA) (pp. 720-724). IEEE.
