Updated on March 16, 2023
Audit trail is the detailed record of transactions from their start to their end in its correct sequence. The audit trail is an important aspect of any audit process and requires assessment and verification of all the documentation relating to a financial transaction to ascertain its correctness as well as its being factual.
Audit trails are also a good source to get external verification of any transaction or get management representation on it if such external verification is not feasible. The process can be as simple as verifying an invoice to undertaking a detailed procedure depending on the complexity of the financial transaction.
Utility of audit trails
Audit trails are useful tools to verify the adherence to mandatory and healthy accounting practices as well as the assessment of management approach towards the functioning of the organisation. The latest technological advancements have simplified the audit trail process and have made it more time-saving and efficient with the scope of verification and levy ownership at every stage of a transaction.