Exam IIA-CIA-Part3 Topic 3 Question 144 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam
Question #: 144
Topic #: 3
An internal auditor was performing an operational audit of the purchasing and accounts payable system. The audit objective was to identify changes in processes that would improve efficiency and effectiveness. Which of the following statements support the auditor's recommendation that electronic data interchange EDI) be implemented within a company?
I. There is a small number of transactions.
II. There is a time-sensitive just-in-time purchase environment.
III. There is a large volume of custom purchases.
IV.
There are multiple transactions with the same vendor.

Suggested Answer: B Vote an answer

EDI is advantageous in a JIT environment because it provides the capacity for instantaneous ordering. Moreover, a JIT environment already is characterized by the close vendor-purchaser cooperation required by an EDI system. Another reason for implementing an EDI system is that the purchaser has a large volume of transactions with the same vendor(s). Otherwise. EDI may not be cost efficient.

by Bart at Oct 06, 2025, 10:39 PM

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