In designing a digital system, defining the functional specification represents the first corner stone in the whole design life cycle. Since there isn't anything precise to verify against and a lot of engineering judgments and tradeoffs are involved in it, as a result, only manual validation according to some criteria is possible in this stage (although some automatic tools may be helpful, but only for those routine part of works). Furthermore, if a design error occurs in this stage and is not captured earlier enough, then its accumulated effect in the following process could mean 200 times more costly than if found earlier.In this paper, a set of validation criteria and a universal model for deriving and validating a functional specification of a digital system are developed and presented. As application evidences, whenever appropriate, relevant system failure cases are also given to illustrate the usefulness of the criteria.