EDI (electronic data interchange) and image-processing systems
I do not know very much about electronic data interchange and image-processing
systems. For the most part it seems to be a platform for business partners to send
important business documents to one another. It seems like this is a major shift from a
system that use to be completely reliant on paper products. EDI is a really useful
system for industries like healthcare and automotive. A few benefits of electronic system
would include: a reduction in errors, less paper waste, time management, convenience,
and overall better record keeping. However, it is important for an auditor to keep in mind
the availability of the document or record and how long that document has existed for.
This is necessary for the test of controls and the extent that the auditor uses those
substantive tests. So although there are benefits to electronic interchange there are
negative implications as well. For example, the electronic evidence must be properly
accessed by the auditor. Then once accessed, it must be easily understood and usable
by the auditor. Also, being able to differentiate between purposeful errors and errors on
the computer must be done. There may be limited access to the evidence and the data
may have been changed. Distinguishing between fraud and clerical error must be done
through careful procedure.
Williamson, A. L. (1997, February 1). The implications of electronic evidence. Journal of
Accountancy. Retrieved September 15, 2022, from
https://www.journalofaccountancy.com/issues/1997/feb/implic.html
