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Audit Trail Definition

March 3, 2015

Mike Kappel

Definition
In accounting, an audit trail is the set of documents that support the transactions recorded by a business.

Expanded Definition
The source documents for a transaction provide the step-by-step history of that activity or event. The documentation will be important if there should be an audit, can help you maintain accurate records, and can work as a deterrent for fraud. Audit trail items can include receipts, bills of sale, correspondence, invoices, etc. It is important to carefully file these items so they can be easily retrieved if needed.

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