GlossaryAccounting & Bookkeeping
Audit Trail
Also called: audit log
What is Audit Trail?
An audit trail is the chronological record of every entry, edit and deletion in a system, along with who made it and when. In accounting software it is what makes after-the-fact changes visible.
Why Audit Trail matters
An audit trail protects the business as much as it constrains staff. It settles the question of whether a bill was voided, a rate changed or a payment reversed, without anyone having to rely on memory.
How Audit Trail works in practice
Keep edit logging switched on, review void and discount reports regularly, and give each user their own login. Shared logins destroy the trail entirely, which is usually the first thing an auditor notices.
Frequently asked questions
Without them, every action traces to one shared account and the trail identifies nobody.
Related terms
Journal EntryA dated record of one transaction, with its debits and credits.Comps and VoidsComplimentary items and cancelled bills, and the controls around them.Invoice NumberingThe sequential series that identifies each invoice you issue.Bank ReconciliationMatching your cash book against the bank statement.