Implementation Guide on Reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014
Rule 11(g) is reproduced below:
“Whether the company, in respect of financial years commencing on or after the 1st April, 2022, has used such accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the software and the audit trail feature has not been tampered with and the audit trail has been preserved by the company as per the
statutory requirements for record retention.”
The requirement was initially made applicable for the financial year commencing on or after the 1st day of April 2021
vide notification G.S.R. 206(E) dated March 24, 2021. However the applicability was deferred to financial year commencing on or after April 1, 2022, vide MCA notification G.S.R. 248(E) dated April 1, 2021. It may be noted that a new requirement for companies has been prescribed under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requiring companies, which use accounting software for maintaining their books of account, to use only such accounting software which has audit trail feature. This requirement for companies was initially made applicable for financial year commencing on or after April 1, 2021.
However, its applicability has been deferred two times and this requirement is finally applicable from April 1, 2023.
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