BCampbell
Member
Our company that runs E1 in India is referencing an audit requirement as follows. Is anyone familiar with this requirement and what it entails? I am specifically looking at #1 below. Would transaction history in F0911 be enough to satisfy this requirement? Otherwise maintaining an audit history log of before and after record changes could become quite cumbersome:
"As per Section 143(3) of the Companies Act, 2013 prescribes various matters on which auditors
are required to report in their auditor's report. The Rule 11(g) requires auditors to report on the use
of accounting software by company for maintaining its books of account which has a feature of
recording audit trail.
This requirement for companies for financial year commencing from April 1, 2023.
The management has a responsibility for effective implementation of the requirements prescribed
by account rules i.e., every company which uses an accounting software for maintaining its books
of account, should use only such accounting software which has the following features:
1. Records an audit trail of each and every transaction, creating an edit log of each change
made in the books of account along with the date when such changes were made.
2. Ensuring that audit trail is not disabled during the year.
3. Preserving the audit trail records for the statutory requirements for records retention for a
period of eight years."
"As per Section 143(3) of the Companies Act, 2013 prescribes various matters on which auditors
are required to report in their auditor's report. The Rule 11(g) requires auditors to report on the use
of accounting software by company for maintaining its books of account which has a feature of
recording audit trail.
This requirement for companies for financial year commencing from April 1, 2023.
The management has a responsibility for effective implementation of the requirements prescribed
by account rules i.e., every company which uses an accounting software for maintaining its books
of account, should use only such accounting software which has the following features:
1. Records an audit trail of each and every transaction, creating an edit log of each change
made in the books of account along with the date when such changes were made.
2. Ensuring that audit trail is not disabled during the year.
3. Preserving the audit trail records for the statutory requirements for records retention for a
period of eight years."
