Audit Trail
Definition
An audit trail is the record of who entered, changed, or approved a transaction and when. Most accounting software keeps this automatically.
Example
A bookkeeper changes the amount on a vendor bill from $300 to $350. The audit trail shows who made the change, when it was made, and the original amount.
Why It Matters
An audit trail helps track down errors and deter fraud. It provides evidence that transactions were reviewed and approved.