What is an audit trail?
Definition of an audit trail
An audit trail is a report that shows details of all the changes that have been made to a set of accounting records. The report may include details of who made the change, when the change was made and the impact the change had on the business’s accounts.
Why is an audit trail important?
An audit trail makes it easier for business owners and accountants to identify and correct any errors that may occur in a set of accounting records. In addition, the report provides a degree of transparency that can be helpful in detecting unusual activity.
An audit trail can be particularly useful when a business’s accounts are being managed by more than one person. FreeAgent’s Audit Trail report makes it easier for business owners and their accountants to collaborate by giving everyone a better understanding of the changes that have been made to the business’s books.