Auditability

DEFINITION of 'Auditability'

The ability to achieve accurate results in the examination of a company's financial reporting. Auditability is dependent upon the company's financial recording practices, the transparency of the company and the forthrightness of the managers who interact with the auditors. A company with a great deal of transparency and complete records has greater auditability than a company whose records are incomplete and whose managers are evasive.

BREAKING DOWN 'Auditability'

Auditability is an important factor in the auditing process. An audit is most effective when auditors are given access to the correct financial information. A company that is considered auditable allows auditors to do a more thorough and accurate assessment of the company's financials.