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Electronic data interchange (EDI) was pioneered by the shipping industry. With supporting software and hardware now relatively inexpensive, efficient information transfer between customers and suppliers is feasible for many industries. EDI is not just an expansion of distributed data processing; it involves standardized formats, error checking, data processing, and trading partner inquiry capability. One major advantage of EDI is reduced data entry costs; another is the elimination of mail delivery time and check clearing time. To preserve the reliability of financial data, certain elements are required in an EDI system, including: 1. competent personnel, 2. segregation of functions, 3. proper authorization of transactions, 4. limited access to assets, and 5. periodic comparison of records with assets. EDI project development requires management approval, user involvement, feasibility studies, and design specifications that build in the necessary controls.