INTERNAL CONTROL CONSIDERATIONS FOR GLOBAL ELECTRONIC DATA INTERCHANGE

Abstract

To remain competitive in today's global marketplace multinational organizations have to adopt advance computer and communication technologies, such as expert systems, neural networks, and global electronic data interchange (EDI). Global EDI transcends traditional corporate and national boundaries; therefore, to maintain availability, confidentiality and integrity of data, the management must develop internal control mechanisms. This paper discusses both the external and internal risks and control activities related to the standardization of hardware, software, and communication protocols, the availability of global networks, the existence of cultural and language barriers, and the importance of legal considerations. Data confidentiality and integrity controls such as access control, encryption, traffic padding, routing control, cable protection, notarization services, acknowledgment control, and audit trail are important for controlling risk in global EDI.