on March 24y, 2021, the MCA introduces a new rule relating to accounting software by introducing sub-rule (1) of Rule 3 of the Companies (Accounts) Rules, 2014.
The new rule obligates every company that uses an accounting software. To maintain the books of accounts to ensure the following features in the new accounting software with audit trail:
- Must have audit trail logging feature for every transaction
- Editing the record for each change in the books of account with a date stamp
- The audit path should not be able to be disabled
In addition to the above, the MCA also changed the content of the audit report, in which the auditor should comment as follows:
Whether the company has used accounting software with an audit trail to maintain its books of accounts that have the following features?:
- Recording the audit trail
- The feature works all year round
- The audit path feature has not been tampered with
- The audit trail has been maintained in accordance with the record retention rule
As we know, most of the small and medium sized businesses in India are using traditional accounting software.
Given the schedule provided by the regulator, it is difficult for companies to find alternative accounting software or to approach existing accounting software companies to develop this feature. Developing this scale may not be quick and easy on the part of an accounting software company.
If you are looking for a ready-to-use accounting software with an audit trail, check out TYASuite? Cloud ERP Programming. With Plug and Play Cloud ERP, you can go live in a matter of weeks.