Audit Trail
A record of who did what, when, in a system or a file — including what a value was changed from and to. Also the name of a specific Companies Act compliance requirement for accounting software to log edit history.
Related terms
- Audit Risk
The risk that the auditor expresses an inappropriate opinion when the financial statements are materially misstated — the product of the risk of material misstatement and detection risk.
- Audit Sampling
Selecting less than 100% of a population to test, and projecting the result to the whole. Distinct from full-population testing, where every transaction is tested and nothing is projected.
- Bank Guarantee
A bank's commitment to pay a beneficiary on a customer's behalf if the customer fails to meet an obligation — a contingent liability requiring disclosure, not recognition on the balance sheet.
- Bank Reconciliation Statement (BRS)
A reconciliation between the cash book balance and the bank statement balance, explaining every difference (outstanding cheques, unrecorded charges, deposits in transit).
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