ACC 622 Topic 8 DQ 2

Topic 8 DQ 2 Many large companies use an electronic data interchange (EDI) to communicate with key customers and suppliers. Explain the benefits and risks involved when companies use EDI. Explain one way that the use of EDI affects internal controls and the auditor's testing. In your response, do not use the same benefits and risks that have already been posted by a classmate. Ascending | Descending My Posts | Substantive |Flagged | All Dec 12, 2018 09:03 PM0 Like Validia King 3 posts Re:Re:Topic 8 DQ 2 Juan, You made some very valid points. EDI definitely has its pros and cons. Although it reduces costs, it can be costly in other area such as those you mentioned. Ensuring that the system is secure is extremely important. Hackers have gotten creative with figuring out ways of accessing systems. EDI is typically for those large companies. Smaller companies tend to stick to the traditional way of conducting business. Dec 12, 2018 07:37 PM0 Like Connor Frederick 3 posts Re:Re:Topic 8 DQ 2 EDI systems are truly a game changer for businesses. In my retail setting for example, when Coca-Cola brings in product through the back door they can plug a device directly into our system. This device loads the invoice into our system and awaits approval by someone internally. The two different systems communicate to get the company paid and the invoices closed. Doing this type of work manually would be truly difficult. EDI's really do make a difference for an organization.