The audit trail helps trace transactions in which way?

The audit trail helps trace transactions in which way?

• A. A chronological list of transactions.
• B. From origin to output or backward from output to origin.
• C. A method for encrypting data.
• D. A report of payroll.

Answer: (B)

An audit trail is about traceability: it records the steps a transaction takes so you can follow its life from beginning to end or, if needed, work backward from the final result to the origin. This bidirectional traceability lets auditors see who performed each action, when it happened, and how data moved through the system, which helps verify accuracy, reconstruct events, and spot irregularities or fraud. While a log might appear as a chronological list, the essential feature is the ability to trace the transaction path from origin to output or from output back to origin. It’s not about encrypting data or producing a payroll report.

An audit trail is about traceability: it records the steps a transaction takes so you can follow its life from beginning to end or, if needed, work backward from the final result to the origin. This bidirectional traceability lets auditors see who performed each action, when it happened, and how data moved through the system, which helps verify accuracy, reconstruct events, and spot irregularities or fraud.

While a log might appear as a chronological list, the essential feature is the ability to trace the transaction path from origin to output or from output back to origin. It’s not about encrypting data or producing a payroll report.