Standards & Evidence
Audit evidence is designed into the architecture, not reconstructed after-the-fact.
Seven standards mapped into deterministic workflows across the transaction lifecycle. The platform embeds accounting and regulatory requirements directly into its computation engine — enforced where applicable on every event, not checked retrospectively in a quarterly review.
The Seven Standards · Enforcement Table
What each standard requires. Where Enveriti enforces it.
| Standard | Topic | What it requires | Where Enveriti enforces it |
|---|---|---|---|
PCAOB AS 1105 | Audit evidence | Sufficient appropriate audit evidence: existence, completeness, accuracy, valuation, presentation. | Five-role attestation per material event with cryptographic signing; hash-chain provenance from raw events through every computational output. |
ASC 310-20 FASB 91 | Loan origination fees & EIR | Effective interest rate computation amortizing origination fees and OID over the expected life. | Convergence-bounded Newton-Raphson EIR solver to ≤1e-10 tolerance under ACT/360 — bracketed root-finding with a hard iteration ceiling, never diverges. Daily net investment check reconciles to the penny. |
ASC 820 | Fair value measurement | Level 1 / 2 / 3 hierarchy with documented unobservable inputs and full rollforward. | Level 3 valuations via DCF, comparable transactions, and CDS-implied methodologies. Calibrated discount rates (SOFR + credit spread) with full assumption tracking. |
ASC 326 | CECL — current expected credit losses | Probability of default × loss given default × exposure at default with historical and forward-looking inputs. | PD/LGD/EAD models with vintage analysis, risk-rating-driven PD assignment, collateral-adjusted recovery rates. |
ASC 860 | Transfers & participations | Three-prong true-sale qualification testing for participation transactions. | True-sale engine, pari passu waterfall allocation, automated double-entry journal generation with gain/loss computation. |
ASC 230 | Statement of cash flows | Operating, investing, financing classification with reconciliation to the balance sheet. | Automated cash flow classification derived from the event ledger. Cash flow projections, priority waterfall computation, liquidity forecasting. |
SOX 404 | Internal controls over financial reporting | Documented controls over GL balance, trial balance, journal authorization, segregation of duties. | Automated GL balancing checks, balance-sheet equation verification, reconciliation break monitoring, journal entry authorization trails, segregation enforcement. |
The Seven Standards · In Depth
Click any standard to see what it requires and how Enveriti enforces it.
Audit evidence under AS 1105 must be both sufficient (quantitatively adequate) and appropriate (relevant + reliable). Conventional architectures meet this through sampling and retroactive reconstruction. The Evidence Spine meets it by construction — every material event is hash-chained, signed by at least two of five required roles, and reproducible end-to-end without anyone’s word.
Where Enveriti enforces it
- Five-role attestation per material event (Operator · Agent · Administrator · Borrower · Fund Manager)
- SHA-256 cryptographic signing on every event
- Hash-chain provenance from raw events through every computational output
- Append-only ledger — errors corrected via compensating entries, never altered
PCAOB AS 1105 · in detail
Sufficiency and appropriateness, built into the architecture.
Audit evidence under AS 1105 must be both sufficient (quantitatively adequate) and appropriate (relevant + reliable). Conventional architectures meet this through sampling and retroactive reconstruction. The Evidence Spine meets it by construction.
Hash-chain provenance
Every computational output ties back through a hash chain to the raw events that produced it. An auditor can reconstruct any number, on any historical date, without relying on anyone’s word about what happened.
Five-role attestation
At least two of five roles (Operator, Agent, Administrator, Borrower, Fund Manager) attest each material event with a signed SHA-256 hash. No single party can misrepresent the state of a facility.
Append-only ledger
Errors are corrected via compensating entries. Original records are never altered or deleted. Same principle as double-entry bookkeeping — you never erase, you always correct forward.
One auditor walkthrough
From a single dollar of accrued income back to its source events.
Pick any accrued-interest figure on any income-statement line. The Evidence Spine reconstructs the chain end-to-end:
- 01Income-statement line (Account [Effective Yield Accretion], period 2026-04 → 2026-04-30)
- 02Trial balance entry summing the period's daily journal postings
- 03General ledger drill-through to per-event journal entries (DR [Effective Yield Accretion] / CR [OID contra-asset])
- 04Event ledger reveals each underlying lifecycle event with its EIR amortization schedule
- 05Daily position record at the facility level: opening CV, accrued interest, OID amortization, payments, closing CV
- 06Newton-Raphson EIR computation with iteration steps recorded on the hash-chain provenance ledger
- 07Multi-party attestation hash on the originating event, signed by Agent + Fund Manager