Real-Time Auditability

Definition ∞ Real-time auditability refers to the capability of a system, particularly a blockchain or distributed ledger, to provide immediate and continuous access to verifiable transaction records and financial data for auditing purposes. This means that financial activities can be monitored and assessed as they occur, rather than relying on periodic, retrospective reviews. The transparent and immutable nature of blockchain technology inherently supports this feature. It significantly enhances accountability and reduces the potential for fraud.
Context ∞ News frequently discusses real-time auditability in the context of improving transparency in financial reporting, particularly for digital asset companies and decentralized autonomous organizations. Regulatory bodies often view real-time auditability as a significant advantage of blockchain-based systems for compliance and oversight. The pursuit of real-time auditability is a key driver for institutional adoption of distributed ledger technologies.