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
Security & tenancy
Isolated by client. Encrypted. Every read logged.
Enveriti is single-tenant by client and federated by role: each client’s facilities, events, and attestations are isolated at the database level, not by row filter, and each counterparty reaches that record only through its own role. Data is encrypted in transit and at rest; the attestation chain is hash-linked so any alteration after signing is detectable by any party holding the prior hash. Role-based access follows the five-party model — Operator, Agent, Administrator, Borrower, Fund Manager — so a counterparty sees the events it attested and nothing else. Every read of a regulated record is itself logged.
A SOC 2 Type I examination is scheduled for Q4 2026; the control set is mapped to the Trust Services Criteria today and available under NDA.