Evidence chain
The full traceable link from a financial statement figure back to source data, calculations, and documented judgements.
Definition
The evidence chain is the audit trail that connects every number in the statutory accounts back through journal entries, calculation runs, amortisation schedules, and ultimately to the source lease terms and documented judgements. A complete evidence chain allows an auditor to verify the accuracy and appropriateness of every lease accounting balance.
Why it matters
Without a clear evidence chain, lease accounting is not auditable. Finance teams using spreadsheets often struggle to maintain a traceable link from statutory note to source data. This is a common audit finding.
In AuditLease
The evidence chain is central to AuditLease's purpose. Every calculation run, journal batch, and schedule line carries traceability fields. The statutory note is generated directly from the same data.
Related terms
Put this into practice with AuditLease
AuditLease handles IFRS 16 and FRS 102 lease calculations, statutory note generation, journal entries, and audit evidence — so your team spends less time on spreadsheets and more time on judgements.
This definition is for general information only and is not accounting or legal advice. Definitions are based on IFRS 16, FRS 102, and associated guidance published by the IFRS Foundation and the Financial Reporting Council. Users should refer to the applicable accounting standards and their professional advisers for judgement-specific matters.