audit trail

Definition

A documented sequence of transactions showing every step from origin to final entry, allowing auditors to trace financial data backward like forensic accountants solving a very boring crime. When the trail goes cold, so does your credibility.

Example Usage

The missing audit trail for the $2 million expenditure raised more red flags than a communist parade.

Origin

Emerged with computerized accounting systems in the 1960s-70s when tracking changes became both easier and more necessary.

Fun Fact

Sarbanes-Oxley legislation made robust audit trails mandatory after Enron proved that companies would absolutely destroy evidence if given the chance.

Source: Auditing and compliance terminology

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disbursement

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payback

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