Which of the following statements regarding EDI and its audit implications are correct?

I. EDI, when used effectively, will result in the elimination of most paper documents currently used for control purposes.

II. Generalized audit software will likely be the most effective audit technique to test EDI applications.

II. The use of EDI will require the audit to focus more on evaluation of the client’s system than on testing year-end account balances.

a. I only.

b. II only.

c. I and III only.

d. II and II only.

e. I, II, and II.