Audit Baseline

An audit baseline is the initial state of an entity's financial data against which all future changes and audits are compared. It establishes the starting point for verifying that assets and liabilities are being managed correctly.

Without a clear baseline, it is impossible to track the evolution of a company's solvency over time. The baseline includes all assets held, all liabilities owed, and the associated cryptographic commitments.

This record must be carefully maintained and periodically updated to ensure that audits remain relevant and accurate. It acts as the anchor for the entire verification process, providing a consistent reference for auditors and stakeholders.