Electronic data interchange or EDI allows information from a
computer application in one company to move directly to a computer
application in another company using a standardized format
(IBM.com). This process replaces the use of paper documents for
both organizations. Image processing transforms an image into a
digital format that allows functions to be performed in order to
extract important information. Auditors need to be aware of both of
these concepts when asking their client for audit documentation. The
client may provide all evidence and documentation only in an
electronic format - there are many companies moving towards being
"paperless". The documents using EDI will be easier to trace back to
their origin and may result in less errors as they are coming directly
from the other organization's system. I recall in my dealings with
auditors, there was always a request to see the file path that the
documents were saved under.
References:
IBM.com. What is EDI: Electronic Data Interchange.
https://www.ibm.com/topics/edi-electronic-data-interchang\
Great Learning.com. What is Image Processing?
https://www.ibm.com/topics/edi-electronic-data-interchange
Messier, W.F., Jr., Glover, S.M., & Prawitt, D.F. (2019). Auditing &
Assurance Services: A Systematic Approach (11th ed.). New York, NY:
McGraw-Hill Education
