An audit trail is a process pathway built into a well designed accounting system that allows amounts reported in the financial statements to be traced back to their original source. An audit trail consists of a chronological sequence of records and source documents that provides the evidence required by an auditor to reconstruct previous steps in the accounting system. An audit trail facilitates defect analysis and so helps verify the accuracy and reliability of financial reports.
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Scooped by
Peter John Baskerville
onto Basic Accounting Concepts August 17, 2011 12:32 AM
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