What is Electronic data interchange?
In short
Electronic data interchange (EDI) is the computer-to-computer exchange of business documents, such as purchase orders and invoices, between companies in a standard format, without paper.
Key takeaways
- It speeds up processing and reduces data entry errors.
- Controls include authenticating trading partners, encrypting transmissions and checking messages for completeness.
- With less paper, audit evidence is mostly electronic.
Where it's tested
ISC: Information Systems Fundamentals — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which processing method updates master files immediately as each transaction occurs?