Audit Trail


DEFINITION of 'Audit Trail'

A step-by-step record by which accounting data can be traced to their source. The SEC and NYSE will use this method for the explicit reconstruction of trades when there are questions as to the validity or accuracy of an accounting figure.


This is the technique used to track improper market activity. By documenting and analyzing all houses and brokers involved in specific trades, those who follow the audit trail can (hopefully) identify the culprit.

  1. Audit

    An unbiased examination and evaluation of the financial statements ...
  2. Cookie Jar Accounting

    A disingenuous accounting practice in which periods of good financial ...
  3. Unqualified Audit

    Also known as a complete audit. An audit that has been performed ...
  4. Cook The Books

    A buzzword describing fraudulent activities performed by corporations ...
  5. Accounting

    The systematic and comprehensive recording of financial transactions ...
  6. Insider Trading

    The buying or selling of a security by someone who has access ...
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