Audit trail is a verifiable tracking of document movements across different transactional levels of a company. Thus it makes it easy for a document’s history to be traced from the initial stage of creation to any altercation done on the document either in terms of editing, approving and transacting. Audit trail is date and time oriented and gives a different level of accountability to persons handling that specific document, reducing loopholes such as a document lying in one position without any specific action taking place. This would also enable an increase in productivity because of the level of improvement on the accountability part.One is able to track where the document has reached electronically without the tedious manual following up of the whereabouts of an important document. Audit trail works best in certain areas such as financial transactions, work events, product development and other areas where multiple numbers of people are involved.
In the healthcare industry audit trail is able to track access to patients medical information and any updates made therein.
In the financial industry audit trail would reveal and uncover any information in relation to customer’s transactions and compliance and any changes that are done therein and if there are any questions with regards to the accuracy and validity of the information.
How does an audit trail work?
When it comes to a full audit trail with regard to a financial transaction, it will show the full execution of a specific execution for example it will reveal a time stamp revealing the seller, the purchaser, time of sale, location of sale and records key details of the transaction and processes which can be reviewed later. Audit trail can be for a simple process and also for a complex process. Audit trail can be as simple as a retail purchase where a receipt is given when an item is purchased or as complicated as a mortgage payment where audit trail is used to verify the source of funding for a downpayment for a home by a home buyer. Financial regulators can use audit trail to examine brokerage firms when there is suspicious market activity.
Why is the audit trail important in document management?
To track back any irregularities and process breakdowns if and when they happen It is important for businesses to maintain a complete and comprehensive audit trail. An airtight audit trail can help businesses identify internal fraud by keeping track of the different users and the actions they take with regard to the company’s data and information. Audit trait can also help track external data breaches issues. Malware and ransomware are on the rise and having an audit trail enables monitoring, identifying and flagging down outsiders who are up to no good. This improves the businesses information security capabilities. Audit trail also function as a compliance tool in that it enables control and function of user access and versioning, maintains privacy settings that can be tracked and adjusted to the standard requirements
Who uses an audit trail?
Audit trails are used by staff, managers, accountants, legal teams and others but managed by the IT department who takes care of the electronic records but they are also part of the audit trail as the initiators of the process. The IT department updates and makes changes to the audit trail thus being part of it. .
Which industries can use audit trails?
Most industries can use audit trail to maintain control in operations, for compliance and information security. Audit trail controls internal and external security breaches and protects against internal fraud. Maintains compliance for internal and external audits. Examples of industries where audit trail could be necessary include financial and accounting, healthcare and medical information, manufacturing and product design, It tracking and data, digital content management systems.