Audit Trail (Edit Log) Rule in Accounting Software from 1st April,2023

• Background of Audit Trail Rule
• Audit trial rule and Tally
• Audit Trail (edit log) features  in TallyPrime Edit Log Release

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

The audit trail rule

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 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.

Audit trial rule and Tally

With Audit trail rule to start from 1^st April, 2022, many trade associations along with software service providers have been working with the ministry to bring out a detailed version of the amendment. Tally has been driving many such discussions as the leading software product developer of the country.

Tally had constantly interacted with the ministry, the trade associations and CA federation to collate and debrief the concerning aspects of the amendment. Thus far the ambiguous elements have slowly been defined, and market concerns and operational issues are being handled to meet the expectations of both business owners and the department.

The outcome of these interactions can be seen in the market readiness for audit trail rule. Unlike 2021, now the business world and CA community are better placed to implement and manage Audit Trail in their accounting software.

The solutions designers from Tally, who were active participants in these dialogues have used their rich experience to design and shape TallyPrime to meet the requirements necessary for a successful implementation of edit log functionality. Being the mass market product that TallyPrime is, it should be flexible enough to meet the requirements of varied business segments, across various levels, and meet the security and speed parameters that is always expected from Tally.

Audit Trail (edit log) features in TallyPrime Edit Log Release

The latest release of 'TallyPrime Edit Log Release', is enhanced with the edit log feature that caters to the amendment released by the Ministry of Corporate Affairs (MCA). Following are the features of  TallyPrime edit log release:

• Track the edits for masters and every transaction
• Capture the date details and username when such changes (edits) are made
• Difference report to show the elements of the version that have been modified
• Reports are enhanced to filter the edited transactions
• Designed to ensure edit log feature will be enabled all the time to meet the MCA guidelines of ‘Edit trail cannot be disabled.’

Read More About Audit Trail

Audit Trail – Meaning & Examples, Why do We Need an Audit Trail (Edit Log) for Businesses, 5 Features to Look in Audit Trail (Edit Log) Accounting Software, Audit Trail – Edit Log the New Statutory Watch Guard for Businesses, How Audit Trail (Edit log) can Lead to Increased Compliance and Transparency

Audit Trail Rule

Business Impact of Audit Trail (Edit Log) Rule, Key Requirements of the Audit Trail (Edit Log) Rule Issued by MCA, Audit Trail Rule (Edit Log) Applicability – Businesses who Should Follow the Rule, How to Prepare your Business for Audit Trail (Edit Log) Rule