The Ministry of Corporate Affairs (MCA) recently issued a notification to amend the date on which the audit trail rule in accounting software be mandated for companies. According to the notification, the new audit trail rule in accounting software will be implemented from 1st April,2023.

According to the notification issued, all the businesses that are using accounting software for maintaining books of accounts should have an audit trail feature comprising of the following:

  • Create an edit log of each and every transaction with changes made in the books of account
  • Capture the date details when such changes (edits) are made,
  • Software to ensure that the edit trail cannot be disabled.

Further, the rules state the edit log feature should have been operated throughout the year for all the transactions recorded in the software, the edit log feature has not been tampered with, and the edit log feature has been preserved by the company.

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