Which action is best to ensure the authenticity of orders in an electronic data interchange system?

Study for the CISA Domain 1 Exam. Get ready with flashcards, multiple-choice questions, hints, and explanations. Prepare thoroughly for your audit and assurance certification!

Ensuring the authenticity of orders in an electronic data interchange (EDI) system is crucial for maintaining trust and preventing fraudulent activities. Verifying the identity of senders and ensuring that orders correspond to contract terms serves as a robust method for establishing authenticity. This approach confirms that orders are placed by legitimate and authorized individuals or entities, thereby reducing the risk of unauthorized orders that could lead to significant financial or operational issues.

By cross-referencing the identities of senders with existing contractual agreements, organizations can validate that the requests align with agreed terms. This method of verification serves to authenticate the transaction at its source, thereby ensuring that the order not only comes from a legitimate party but also adheres to the terms of engagement set forth in prior agreements.

While acknowledging receipt of electronic orders, performing reasonableness checks, and encrypting orders all contribute to the integrity and security of the data exchange, they do not specifically address the fundamental issue of verifying that the individuals placing the orders are indeed authorized to do so. Thus, the action of verifying senders' identities and the conformity of the orders to contract terms is the most effective means of ensuring authenticity in an EDI system.

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