Unauditable

Unauditable refers to financial records, transactions, or systems that cannot be verified or validated through standard auditing processes. This term often signifies a lack of transparency, organization, or compliance in financial practices, rendering the information unreliable for assessment or scrutiny by auditors or regulatory bodies.

Unauditable meaning with examples

• The company's rapid expansion led to several branches operating with unauditable financial records, raising red flags for investors who seek transparency before committing their capital.
• After the merger, it became evident that the accounting practices of the smaller firm were unauditable, complicating the integration process and prompting the new management to rethink their strategy.
• Regulatory agencies expressed concern over the unauditable nature of certain transactions, emphasizing the need for stricter compliance measures to protect stakeholders' interests and ensure accountability.
• In her audit report, the accountant highlighted that numerous expense claims remained unauditable due to missing documentation, which could potentially lead to financial discrepancies in the future.
• The nonprofit organization faced scrutiny after it was discovered that a significant portion of its funding came from unauditable sources, which prompted questions regarding its financial integrity and management practices.