# State Condition ## State Condition Pacioli outputs visualized state condition readings. Compliance with each internal and disclosure control is color coded for easy identification and remediation. This is extremely useful for internal audit teams that are required to implement a sound internal and disclosure control framework. State condition indicates a pass or fail state across nine categories of validation. * **Proof of Reserves:** Cryptographic proof of customer assets and liabilities. * **Syntax**: Technical format specification compliance. * **Report Model Structure**: Logical structure compliance. * **Report Mathematics**: Mathematical compliance. * **Relations between financial report line items**: Financial statement line item relational compliance. * **Fundamental Accounting Concepts Continuity Cross Checks:** Accounting concept consistency compliance. * **Disclosure Mechanics:** Compliance with pattern, logic and volume of required disclosures. * **Reporting Checklist:** Pacioli validates a reporting checklist to verify that reports are compliant and complete. Sometimes these reporting checklists can be very extensive. * **Process Controls:** Pacioli detects compliance with specified functional objectives of financial reporting, audit and analysis Process Controls.

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