Auditable means capable of being audited or examined for accuracy, completeness, and reliability. It refers to the quality or characteristic of being subject to an audit. An audit is a systematic examination of financial records, accounts, documents, or processes of an organization to assess their accuracy, integrity, and compliance with established standards or regulations.
In the context of businesses and organizations, auditable implies that the company's financial statements, operational processes, and internal controls can be reviewed by an independent auditor or an internal audit team. By having auditable records, it ensures transparency, accountability, and conformance to legal, regulatory, and accounting standards.
An auditable system or procedure should provide sufficient and appropriate documentation, evidence, and support for the financial or operational transactions of an entity. It should be structured and managed in a way that enables auditors to evaluate the control environment, identify potential risks or errors, and determine the reliability of the reported information.
Furthermore, auditable systems are often designed with specific criteria or standards in mind, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring compliance and comparability across different organizations within the same industry or jurisdiction.
In summary, being auditable means having records, processes, or systems that are open to scrutiny by auditors to ensure accuracy, compliance, and reliability.
