For companies using Electronic Data Interface (EDI), the invoice is transmitted from the supplier electronically. EDI affects how the auditor evaluates audit evidence in this transaction cycle.

Question

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With the use of EDI, the audit evidence is in electronic form, and the auditor needs to evaluate the controls in place to ensure the completeness, accuracy, and reliability of the data transmitted through EDI. The auditor also needs to ensure that the EDI system is secure and that there is adequate backup and recovery procedures in place. Additionally, the auditor needs to evaluate the segregation of duties and the access controls over the EDI system.

For Companies Using Electronic Data Interface (EDI), the Invoice Is