Audit Trail Accounting Software for Companies

MCA has vide its notification dated 24.03.2021 (Companies (Accounts) Amendment Rules, 2021) notifies that for the financial year commencing on or after the 1st day of April, 2021, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

Further Companies (Accounts) Second Amendment Rules, 2021- MCA has postponed the applicability of software with Audit features for Companies from 01.04.2022 instead of 01.04.2021 notified earlier

There is no cap or restriction on the applicability of the above provision and is applicable to all the companies irrespective of their capital or turnover.