The audit trail is a step by step record that shows what operations had been performed over a specific period of time. It is useful in tracking out any market activity that is improper. It is specially used in trade with the help of which any culprit in any particular trade can easily be identified.
Audit trail is also called audit log. It can be said that it provides information and evidences about certain activities during a specific period of time. Audit trail is a lot useful for the maintenance of security and for identifying the transactions that appear to be unclear. It is being readily used in numerous DMS and accounting systems. Today, one can even find the Audit trial software in the markets that can easily enable the administrator to keep track of all the activities that are being carried out and all the resources that are being consumed.
The activities through which audit records result include financial transactions, transactions related to health and scientific research and even communications by accounts, people, accounts and various other entities.
The process of audit trial can be run in the privileged mode which means that the person carrying out the process can access everything and no one can resist answering him. On the other than, the trail files cannot be accessed by any other person. As mentioned above too, many software have been introduced in the markets with which auditing can be performed easily and thus many companies are using this software.
When it comes to the use of audit trail in accounting, then this process refers to the documentation of all the transactions that have been made in the general ledger in a certain period of time. The documentation can be prepared either electronically or it can also be prepared on paper too.
- Debt ratios
- Liquidity ratios
- Profitability ratios
- Asset management ratios
- Cash Flow Indicator Ratios
- Market value ratios
- Financial analysis
- Business Terms
- Financial education
- International Financial Reporting Standards (EU)
- IFRS Interpretations (EU)
- Financial software
Most WantedFinancial Terms
- Most Important Financial Ratios
- Debt-to-Equity Ratio
- Financial Leverage
- Current Ratio
- Interest Coverage Ratio (ICR)
- Solvency Ratio
- Receivable Turnover Ratio
- Return On Capital Employed (ROCE)
- Accounts Payable Turnover Ratio
- Debt Service Coverage Ratio
Have 10 minutes to relax?Play our unique
Play The Game