noun
- the quality or state of being able to be audited; the extent to which financial records, systems, or processes can be examined and verified for accuracy and compliance.
Usage: commonly used in accounting, finance, and business contexts; often appears in discussions of corporate governance and regulatory compliance
Examples
- The company improved the auditability of its financial statements by implementing new accounting software.
- Strong auditability is essential for organizations that must comply with regulatory requirements.
- The auditor praised the firm for maintaining clear records that enhanced auditability.
- Poor auditability of the supply chain made it difficult to track expenses.
- Investors value companies with high auditability because it demonstrates transparency.
- The new system was designed with auditability in mind to facilitate future audits.