Audit-able describes something that is capable of being examined and verified, specifically for accuracy, completeness, and compliance with established rules, regulations, or standards. It implies that a process, system, or set of data has sufficient documentation and transparency to allow for an independent and objective assessment. The purpose of an audit is to identify and correct errors, ensure accountability, and improve overall efficiency. Audit-ability is crucial for maintaining trust, preventing fraud, and ensuring the integrity of financial records and operational procedures. It often involves a comprehensive review of supporting evidence, such as invoices, contracts, and internal communications, to substantiate claims and validate reported information. A system or process deemed 'audit-able' offers a clear trail for review.
Audit-able meaning with examples
- The company implemented a new accounting software system designed to be fully audit-able. This means all transactions are tracked with detailed records, facilitating easy verification by internal and external auditors. The system ensures compliance with industry regulations and provides a clear audit trail for financial reporting, reducing the risk of errors and fraud, and improving overall financial transparency.
- To ensure the project's financial integrity, every expense claim submitted was designed to be audit-able. Detailed receipts, expense reports and project time logs were required, allowing for easy cross-checking and verification of spending. This process guaranteed accountability and gave the project management team the capacity to identify discrepancies and enforce budgetary constraints.
- The non-profit organization's grant applications are carefully constructed to be audit-able by the funding agencies. The applications include transparent financial statements, project reports, and impact assessments, allowing for scrutiny of how funds were allocated and the progress of the project. This helps maintain donor confidence, ensure regulatory compliance and support ongoing funding.
- The new data security protocols are designed to be audit-able by regulatory bodies. Access logs, system configurations, and incident reports are recorded and archived in a secure environment. These logs enable the identification and resolution of potential breaches. This also enhances security measures and demonstrates a commitment to protecting sensitive information, building trust with clients and customers.
- Before the merger, the legal and financial records of both companies were rigorously made audit-able. This involved organizing contracts, reviewing financial statements, and ensuring compliance with all applicable laws. This process ensured that both companies fully understood each other’s financial position and that any potential liabilities or risks were disclosed before finalising the agreement.