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Background:
MCA by notification dated 24.03.2021, inserting provision in company (accounts) rule 2014 had made audit trail in accounting software mandatory with effect from 01.4.2021. Provision regarding audit trail may be read as follows:
“every company which uses accounting software for maintaining its books of accounts shall use every such accounting software which has features of recording audit trail of each and every transactions creating and edit log of each changes made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled”
Further, by notification dated 01.04.2021 it has been postponed and made applicable from 01.04.2022.
Current Status:
By Notification Dated 31.3.2022 it was further postponed and made applicable from 01.4.2023
Hence maintaining the audit trail by the company which uses accounting software is mandatory from 01.4.2023
