Applicability of Audit Trail wef 01st Apr 2023

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W.e.f. 01.04.2023 (FY: 23-24) , as per Notification issued by the MCA (under Companies Act, 2013) , every company which uses accounting software for maintaining its books of account, requires that their software shall have Audit Trail (Edit Log) feature with following functions:

 

- Track each and every changes made in transactions recorded in software;

- Create the edit log of changes made;

- Ensure that the audit trail function cannot be disabled. 

 

The statutory auditors are mandatorily required to comment (for audit to be conducted for FY: 23-24) whether such features are in place or not. If this is not implemented properly, this qualification will be given in the audit report.

 

All companies are required to get their accounting software updated with these features, so that this compliance can be made.

 

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