{"ok":true,"canonical_url":"https://dealroom.so/glossary/audit-trail","api_url":"https://dealroom.so/api/public/glossary/audit-trail","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"audit-trail","term":"Audit trail","group":"Reading the business","definition":"A chronological record of financial transactions that allows for verification of their accuracy and legitimacy. Buyers care because a strong audit trail proves the reliability of financial statements and significantly reduces the risk of fraud or misrepresentation.","what_it_means":"During due diligence, insist on seeing evidence of a robust audit trail, especially for revenue and expense entries. This helps you verify the numbers on the P&L and Balance Sheet, ensuring you're not relying on unverified claims. A weak audit trail is a red flag for potential financial misrepresentation.","url":"https://dealroom.so/glossary/audit-trail","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"}],"related_questions":[{"question":"What documentation demonstrates a lender's adherence to prudent lending standards during an SBA audit?","url":"https://dealroom.so/for-lenders/questions/what-documentation-demonstrates-a-lender-s-adherence-to-prudent-lending-standards-during-a"},{"question":"How does the SBA typically review a lender's loan file in the context of a secondary market audit?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-typically-review-a-lender-s-loan-file-in-the-context-of-a-secondary-marke"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Audit trail","url":"https://dealroom.so/glossary/audit-trail","source_type":"DealRoom Data"}}