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Using of Accounting Software having Audit Trail feature

Software with Audit Trail Feature
Apr 1, 2021
Software with Audit Trail Feature

The Ministry of Corporate Affairs, Government of India, issued notifications dated 24th March, 2021 to amend Companies (Accounts) Rules, 2014 to enhance the disclosures required to be made by the Company in Board Report;

Provided that for the financial year commencing on or after the 1st day of April, 2021, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of:-

  • Recording audit trail of each and every transaction,
  • Creating an edit log of each change made in books of account along with,
  • The date when such changes were made and
  • Ensuring that the audit trail cannot be disabled.

Audit Trail means, an audit trail is defined as a step-by-step sequential record which provides evidence of the documented history of financial transactions to its source. An auditor can trace every step of, the financial data of a particular transaction right from the general ledger to its source document with the help of the audit trail.

Benefit of Amendment:
  • Prevent Fraud
  • Stress free Audit
  • Easy error correcting and time saving