Qualification of Audit Opinion based on Audit trail

This query is : Resolved

Ajani Denish (Querist)
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28 August 2024 Respected Sir/Madam,

one of my client has not enabled audit trail during the Financial Year 2023-24 and also they have not conducted any transcation in company during the year whether i required to qualify my opinion in audit report beased on audit trail not conducted or i can give clean opinion and just mention audit trail paragraph in Auditor’s Responsibilities for the Audit of the Financial Statements.

kindly suggest.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 August 2025 Facts:
Client did not enable audit trail during FY 2023-24.
No transactions recorded in the company during the year.
Key considerations:
Audit Trail Importance:
Audit trail is important for verifying transactions and changes in accounting records.
When no transactions occurred, the audit trail’s role is limited because there is no activity to trace.
Impact on Audit Opinion:
Since there were no transactions, the lack of audit trail does not impair the auditor’s ability to verify transactions (as there are none).
You can issue a clean (unmodified) opinion as there is no scope limitation or material misstatement caused by audit trail not enabled.
Auditor’s Responsibility Paragraph:
You can mention the audit trail in the Auditor’s Responsibility section, indicating that audit trail was not enabled but considering no transactions, it did not affect audit procedures.
Disclosure/Emphasis of Matter (If Needed):
If you feel it necessary, include an Emphasis of Matter paragraph mentioning that audit trail was not enabled but no transactions were recorded during the year.

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