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USING ELECTRONIC DATA INTRCHANGE (EDI) TO IMPROVE THE EFFICIENCY OF ACCOUNTING TRANSACTIONS

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USING ELECTRONIC DATA INTRCHANGE (EDI) TO IMPROVE THE EFFICIENCY OF ACCOUNTING TRANSACTIONS
ACCOUNTING INFORMATION SYSTEM 2

TOPIC:
USING ELECTRONIC DATA INTRCHANGE (EDI) TO IMPROVE THE EFFICIENCY OF ACCOUNTING TRANSACTIONS

TABLE OF CONTENT

NUM
TITLE
PAGE
1
TABLE OF CONTENT
2
2
INTRODUCTION OF TOPIC
3
3
DISCUSSION ON USING ELECTRONIC DATA INTERCHANGE TO IMPROVE THE EFFICIENCY OF ACCOUNTING TRANSACTIONS(7 Article research paper)
4-15
4
CONCLUSION
16
5
Recommendation
17
6
Refference
18
7
Appendices
19

INTRODUCTION OF TOPIC

Electronic data interchange (EDI) is an information technology that standardizes the exchange of information between two parties to a transaction. Cushing and Romney
(1994) classify EDI as a ‘‘transactional’’ accounting information system that reduces the cost of transactions between firms and provides timely information for decision making.

Electronic data interchange (EDI) uses computer-to-computer communications technologies to automate B2B purchases. Audit objectives:
1. Transactions are authorized, validated, and in compliance with the trading partner agreement.
2. No unauthorized organizations can gain access to database
3. Authorized trading partners have access only to approved data.
4. Adequate controls are in place to ensure a complete audit trail.

This study uses data from a large, office furniture manufacturing firm to evaluate the performance effects of EDI. The firm adopted EDI primarily to improve the efficiency of accounting transactions with many of the licensed dealers who order its products (e.g., to expedite acknowledgment of customer orders and to reduce order and billing errors).2 We evaluate whether EDI reduces order-processing time (the time from order receipt to order scheduling), and whether this improvement is greater for more complex orders. Our measure of complexity reflects both the mix of different products the dealer orders as well as features and options the dealer

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