Which of the following tests must an internal auditor perform in order to ensure that inbound electronic data interchange (EDI) transactions are received and translated accurately?
I. Computerized tests to assess transaction reasonableness and validity.
II. Review of log books to ensure that transactions are logged upon receipt.
III. Edit checks to identify unusual transactions.
IV. Verification of limitations on the authority of users to initiate specific EDI transactions.
To ensure that inbound electronic data interchange (EDI) transactions are received and translated accurately, the internal auditor must perform computerized tests to assess transaction reasonableness and validity, review log books to ensure that transactions are logged upon receipt, and conduct edit checks to identify unusual transactions. These activities directly address the accuracy and proper logging of received transactions. Verification of limitations on the authority of users is more related to the control over transaction initiation, which is not directly relevant to the reception and translation accuracy of inbound transactions.
Why not D? I get all first three but I think it is also important to verify limitations on the authority of users to initiate spefic EDI transactions. This would also address accuracy.
Inbound - therefore initiator controls are not in scope
The test doesn’t verify who initiated the transactions. It checks that transactions are received and translated accurately.