Q.What is an audit trail in a computerised accounting system? Why is it useful?

An audit trail is a record within the accounting software itself of who did what, and when, to the accounting data.

An audit trail is a chronological record, maintained automatically by good accounting software, of every entry made in the system and every later change to it — including who made the entry or change, and when. It is, in effect, the computerised system's own internal history of everything that has happened to the accounting data since it was first recorded.

Why it is useful:

1. Traceability. If a figure in a report looks wrong or unusual, an audit trail allows the exact original entry — and any change subsequently made to it — to be traced back and examined, rather than the irregularity remaining hidden inside a final total.
2. Accountability. Because every entry and change is linked to the specific user who made it, an audit trail discourages careless or unauthorised alterations, since any such change can be identified afterward.
3. Support for verification. When accounts are checked or reviewed, an audit trail gives a reliable, tamper-evident record to check transactions against, strengthening confidence in the accuracy of the reported figures. …