Businesses must build and complete audit trails to minimise fraud, accounting errors, etc. The audit trail should also help the finance team check how accurate their transactions and accounting are and ensure they have the correct information for financial statements.
An audit trail is the sequence of events in the lifetime of a transaction that happens from its inception until payment. The audit trail gives a clear view and provides unique insight into the nature of each transaction to various stakeholders.
Stakeholders, be they business leaders, finance teams, internal or external auditors, and tax inspectors, need to be able to follow business transactions to make better decisions (business leaders) or comply with regulations and professional standards (finance teams, auditors).
Each business is subject to various Accounting and Tax regulations, and non-small businesses are subject to financial audits. A business, to avoid penalties, non-compliance with laws and regulations, and to receive a clean audit opinion, needs to be able to provide sufficient details behind each transaction – the so-called audit trail. Here are some of the requirements:
Companies can adhere to compliance requirements more efficiently with a detailed audit trail. Using expense management software, businesses can create great audit trails for all expense transactions.
With Payhawk’s solution, businesses can:
Payhawk’s expense management solution offers all of the above. So, why go through a lengthy process to create the perfect audit trail when Payhawk’s software already has it all? Book a demo to learn more from our team.
Ali Ali is a financial controller in Payhawk. Ali is a chartered accountant with prior BIG 4 experience as an audit manager. Has experience auditing companies across Europe and the US reporting under various GAAP. Experienced in controls over financial reporting.