2 min read
Definition
An audit trail is the sequence of records — invoices, receipts, bank entries and ledger postings — that lets any figure in the accounts be traced back to its origin and verified.
In plain terms
It is the paper (or digital) breadcrumb trail. If you cannot show where a number came from, it is not evidence — it is a guess.
Why it matters for your company
A clean audit trail speeds lending due diligence, satisfies HMRC, and makes your reconciliations defensible. Weak trails slow finance and raise red flags. See due diligence.
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