Audit Trail Applicability Notification PDF
The Ministry of Company Affairs (MCA) vide its notification dated March 24, 2021 and subsequent notification dated April 1, 2022, has made it mandatory for every company to fulfill the requirement of an audit trail feature in their accounting software from 1st April 2023.
The Ministry of Corporate Affairs (MCA) recently issued a notification to amend the date on which the audit trail rule in accounting software to be mandated for companies. According to the notification, the new audit trail rule in accounting software will be implemented from 1st April,2023
Audit Trail Applicability Notification
An audit trail is a record of all the events or activities that have occurred within a computer system or application. It is a chronological sequence of events that provides a way to trace the history of a particular transaction, operation or event. An audit trail can include information such as who accessed a system, what data was accessed or modified, and when it was accessed or modified. It can also include details about failed login attempts, system errors or any other actions taken within a system. Audit trails are typically used for security and compliance purposes, as they can help organizations identify and investigate security breaches or data tampering. They are also used to track user activity and ensure accountability, which can be important in regulated industries like healthcare and finance.
Among the new rules is Rule 11(g), which mandates auditors to report on the use of accounting software that maintains an audit trail. This new rule is significant as it ensures that the books of accounts maintained by companies are accurate and reliable, and the financial reporting process is more transparent
You can download the Audit Trail Applicability Notification PDF using the link given below.