Rashmi
Quick Summary
The Companies Act, 2013 requires auditors to report on certain matters in their audit report, including any other matters prescribed by the Ministry of Corporate Affairs. In 2021, new rules were introduced requiring companies to use accounting software with an audit trail feature and to preserve the
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
An audit trail is a documented record that tracks the sequence of activities and events associated with a financial transaction. In accounting software, it provides a complete history of all transactions, including who made them, when they were made, and any subsequent modifications.
The requirement for companies to use accounting software with an audit trail feature became applicable from April 1, 2023, after being deferred twice.
An audit trail enhances accountability and transparency, helps verify the accuracy and completeness of transactions, aids in detecting errors and fraud, monitors compliance with regulations, and provides a valuable historical record for decision-making.
No, the audit trail feature in accounting software must not be turned off or disabled. It is a mandatory component for all companies.
The management of the company is responsible for selecting appropriate accounting software with an audit trail feature and ensuring compliance with all applicable laws and regulations regarding the retention of audit logs.
A reliable audit trail should include the date and time of the transaction, the user who made it, the source, any related documents, and details of any changes made, including the 'before' and 'after' values. It must also be tamper-proof and accessible only to authorised users.
CAclubindia
