Audit trails can be defined as a baseline that's necessary before analysis or audit in the case of a pending investigation. All business accounting processes are recorded in the audit trail. The transactions, the people accessing the accounts, date and time etc, all relevant information is recorded in an audit trail.

Audit trail in business organizations of the Emirates are also used for multiple reasons. Reconciliation, management of historical reposts, planning of budget, crime and fraud investigation and also the management of risks. Regardless of who accesses electronic records and for whatever minor task for an organization; legal staff, end- user or the manager, the access will be recorded.

Since audit trails can help in future audits of companies, it's essential for the firm's accounting system to be error free. Opt for the services of the best bookkeeping and accounting firms in Dubai to keep a transparent and error-free record of business transactions.  Read on to know how an audit trail can be used for businesses.

How audit trails can help accounting functions

There are numerous benefits and uses associated with the generation of an error-free audit trail. From ensuring compliance to Emirati tax and other business laws, to the determination of any fraudulent activities in the organization and locating missing records, there is a lot that an audit trail can do for organizations. Read ahead to know details:

Compliance to UAE laws

 An audit trail ensures that the company is in compliance with all relevant Emirati regulations and also ensures that companies accounting records are complete for compliance.

Detection of fraudulent activities

The data behind individual transactions is recorded in an audit trail, including the time of creation, and user details. Not only that, but an audit trail also marks any edits made to the record and the user who makes them. These two processes make fraud detection in organizations easier.  Users who access systems to change records of transactions can be identified using the system.

Recovery in the case of an organizational calamity

In the case of a sudden system crash that makes data unavailable for recent transactions, the audit trail can be used to reconstruct any damaged or corrupted files. In addition, if the accounting functions have been doing their work well and audit logs have been backed up continuously, it's possible to recreate transactions for an entire time period.

 Locating missing information

In the case that a specific piece of information is known in case of a transaction, and all other info is not, audit reports can help with the location of the transaction. This can be done by matching all known transaction with any regularly backed up audit logs.

 By eliminating the known transaction, those that have been lost can be identified. It's possible to search using different fields such as amount, user, etc.

Take Away

Audit trails have a number of uses which can benefit organizations. However, for an up–to–date audit trail and audit log, it is important to have the best accounting teams on hand  with sound accounting principles . Since businesses usually have a lot on their minds, it always helps to outsource critical business functions to expert third parties.

Opt for the best bookkeeping and accounting firms in Dubai to help keep your accounting functions error free and to ensure that the audit trails and audit logs are always up to date!