EDI can strongly influence a corporation's ability to reduce overhead, manage the audit trail, enhance materials management, improve inventory control and forecasts, and maximize the effective use of resources. However, The most compelling reason to implement EDI may be in response to major trading partners requesting the establishment of these links in order that they might realize the benefits.
The use of EDI have been rapidly increased in most domestic industry including Financial Institution because of those benefits. If the Internal Control of EDI is not adequate, EDI will be vulnerable to accomplish the its success. Therefore, An effective and efficient Internal Control is essential to its success.
The purpose of the study is to analyze the impact of Internal Control on the Usefulness and the Security for EDI.
To accomplish it, Four research question was addressed and solved.
1. What is the relationship between the Internal Control and the Usefulness of EDI ?
2. What is the relationship between the Internal Control and the Security of EDI ?
3. Dose the degree of agreement between the Internal Control and its perceived importance by the EDI professional affect the Usefulness of EDI ?
4. Dose the degree of agreement between the Internal Control and its perceived importance by the EDI professional affect the Security of EDI ?
To solve these problems, A research model and a set of hypothesis were established and empirically tested. 51 corporates in Seoul(banks, manufacturers, traders) agreed to participate in this study.
Data were gathered through structured interviews, with 51 EDI systems users of each company. Questionnaire consists of three parts. The first 40 questions are related to Internal Control, next, 9 questions are related to the Security, finally, 6 questions are related to the Usefulness.
The results of analysis are summarized as below.
1. There is a significant correlation between the Internal Control and the Security of EDI.
2. There is a significant correlation between the Internal Control and the Usefulness of EDI.
3. An agreement between the Internal Control's actual practice and its perceived importance was proved negligible relationship to the Usefulness and the Security of EDI.
In conclusion, this study supports that The Usefulness and the Security of EDI are affected by the Internal Control which are composed of management controls, application controls, authentication controls, security controls.
The results of this study is that EDI is a good IT, but without consideration, its benefit will not be accomplished.
