INTRODUCTION
Section 143(3) of the Companies Act, 2013 provides various matters on which auditors are required to report in their auditor’s report. Clause (j) of Section 143(3) states that auditor’s report shall also state such other matters as may be prescribed. Rule 11 of the Companies (Audit and Auditors) Rules, 2014 specifies such other matters that are to be reported by the auditor.The requirement with respect to audit trail was contained in Rule 11(g) with regard to auditor’s reporting requirements. The requirement was initially made applicable for the financial year commencing on or after the 1st April, 2021 vide notification G.S.R. 206(E) dated 24th March, 2021. However, the applicability was deferred to financial year commencing on or after 1st April, 2022, vide MCA notification G.S.R. 248(E) dated 1st April, 2021.
The corresponding 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 1st April, 2021. However, its applicability has been deferred two times and this requirement is finally applicable from financial year commencing on or after 1st April, 2023.
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