How does Workday ensure auditability for intercompany and allocation transactions?

Workday ensures auditability for intercompany and allocation transactions primarily by maintaining a detailed transaction log and approval history. This feature provides a comprehensive record of all transactions, including who initiated them, any modifications made, and the approval processes they underwent. This level of documentation is critical for compliance and auditing purposes because it allows organizations to trace the flow of transactions, verify their accuracy, and ensure that all actions taken are properly authorized.

Moreover, having a robust transaction log serves as a safeguard against fraud and errors, making it easier to conduct audits and facilitating transparency throughout the financial processes. This practice supports not only internal compliance but also regulatory requirements, ensuring stakeholders can trust the integrity of financial data.

The other options do not contribute to the overall auditability of transactions. For example, allowing journal entries to be edited after posting would compromise the integrity of the records by making it difficult to trace changes back to their original state. Preventing intercompany transactions from appearing on financial statements would eliminate visibility and insight into these activities, which is essential for financial reporting and analysis. Overriding local accounting standards with global settings could lead to inconsistencies and lack of compliance with regulations specific to certain jurisdictions, further undermining auditability.