Certified Information Systems Auditor Practice Exam 2025 - Free CISA Practice Questions and Study Guide

When evaluating an electronic data interchange (EDI) application, the primary risk that an IS auditor should consider is improper transaction authorization. EDI involves the automated exchange of business documents between organizations, which emphasizes the need for ensuring that all transactions are approved by authorized parties. Without appropriate authorization controls in place, there is a significant risk that unauthorized or erroneous transactions could be processed, potentially leading to financial loss, supply chain disruptions, or compliance issues.

In EDI systems, the integration of various business processes can amplify the impact of unauthorized transactions, making it critical to ensure that there are stringent controls and validation processes for transaction approvals. If these controls are lacking, it can undermine the integrity of the entire system and result in adverse outcomes for the organizations involved.

While data integrity issues, unauthorized access to sensitive data, and insufficient data backup procedures are indeed important risks that should be considered in different contexts, the core function of EDI relies heavily on ensuring that only properly authorized transactions occur. Therefore, placing a primary focus on transaction authorization aligns with the critical needs of maintaining trust and accuracy in EDI applications.