Sequence of source documents, system records, and ledger evidence that lets users trace a transaction from origin to reporting.
An audit trail is the chain of supporting evidence that lets a transaction be traced from its source through posting, processing, and final reporting. It can include documents, approvals, system logs, journal entries, and ledger records.
Without a usable audit trail, it becomes much harder to prove that transactions are real, complete, authorized, and recorded correctly. Audit trails support both internal control and external audit work.
A strong audit trail lets a reviewer move in either direction. They can start with a source document and follow it into the records, or start with a reported amount and trace it back to the originating evidence. That traceability is essential for reconciliation, review, and fraud detection.
A purchase transaction might be traced through a purchase order, vendor invoice, receiving evidence, approval, accounts payable posting, general-ledger posting, and payment record.
An audit trail is not just a pile of documents. It is useful only if the documents and system records connect clearly enough to support verification.