It is a general principle that well-managed audit trails are key indicators of good internal business controls. Over the last few decades, audit trails have transitioned from manual to automated electronic logs that make this historical information more accurate, readily accessible, and usable. This article will define an audit trail, what should be included, the importance of tracking this information, and how to best manage audit trail data.
What Is an Audit Trail?
An audit trail is a record of an event or procedure that provides evidence for authentication and verification of operational actions. Many industries use different kinds of versions of an auditing trail to document progressions based on a series of events. These records show that you’re following the rules and regulations.
Audit trails can also help identify areas of non-compliance by providing information for audits. Whether it is tracking the design changes of a new product, recording financial transactions, or communicating with customers, an audit trail records actions and outcomes. These records almost always include details such as date, time, and information related to the transaction.
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