Why Is the Audit Trail Important

question 4

Essay

Why is the audit trail important?

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Definitions:

Regulatory Capture

A situation where regulatory agencies are dominated by the interests of the industries they are charged with regulating, often leading to biased and ineffective regulation.

Negative Externalities

Costs that are not reflected in the market price, caused by the production or consumption of goods and services, and borne by society rather than the producers or consumers.

Earmarks

Provisions within legislation that allocate specific funds to certain projects, often without a competitive bidding process.

Federal Government Legislation

Laws and regulations created and enacted by the national government of a country.