AUDIT Audit trail Feature is mandatory for accounting software of Company

Audit trail Feature is mandatory for accounting software of Company

Audit trail Feature is mandatory for accounting software of Company

Audit Trail compulsory to be installed in accounting software by Companies w.e.f. 01.04.2023

1.   Every business made mandatory incorporate the audit trail capability into the accounting software with effect from 1 April, 2023, it utilizes for maintains its books of account.

2.   An edit log should be included in the audit trail feature to capture all transactions and any changes made at any point of time during accounting & thereafter,

3.   As per the MCA issue notified (Companies (Accounts) Amendment Rules, 2021) on dated March 24, 2021, every company that utilizes accounting software to maintain its books of account shall only use accounting software that provides a characteristic of recording a -

o   Audit Trail of each and every transaction, 

o   Creating an edit log of each change made in books of account along with the date when such changes were made. 

o   Ensuring that the audit trail cannot be disabled.

4.   The MCA has announced that the above amendments will take w.e.f. 01.04.2023, which advisory given on accounting software used by businesses will have to comply with the Accounts Rules beginning in the FY 2023-24.

5.   According to the related amendments to The Companies (Audit and Auditor) Rules, 2014 (Audit Rules), auditors are now needed to give a statement in their statutory audit report ((in the section Report on Other Legal and Regulatory Requirements,) stating whether,

(a) All the business user whose account been audited must incorporated in characteristic of audit trail (edit logs or change log) recording via accounting software.

(b) Audit trail characteristic was started throughout FY & Same had not been Changed or tampered it and

(c) such kind of above edit logs or audit trails have been matined for duration as specified by the above rules.

5. The Business will required to make ensure that Audit trail of all accounting records can record changes to the transaction, such as when the changes were made, who made them, and what data was changed.

Disclaimer: The content of this post isn't considered to be professional or legal advice, We aren't responsible for any damages arising from your access to the location content & must not be relied on or used as a substitute for legal advice from a lawyer professional in your jurisdiction. CARajput is among India's big digital compliance services platform which committed to helping people have started & developed their businesses. We had started with the goal of creating it easier for start-ups to start out their business. Our main aim is to assist the businessman with applicable laws & regulations compliance and providing support at each & every level to make sure the business stays compliant and growing continuously. For any query, help or feedback you may in touch on singh@carajput.com or Call or what’s-up on 9-555-555-480

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