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MCA notifies use of Accounting Software with Audit Trails

MCA

On 24th March 2021, Ministry of Corporate Affairs (MCA) has notified the Companies (Accounts) Amendment Rules 2021 in which it has been stated that from FY 2021-22 i.e. 1st April 2021 onwards, every company which uses accounting software for maintaining its books of accounts, 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 accounts along with the date when such changes were made and ensuring that the audit trail can not be disabled.

Also the following 2 clauses shall be inserted in the Rules, after :-

a. the details of application made or any proceeding pending under the Insolvency and Bankruptcy Code 2016 during the year along with their status as at the end of the Financial Year.

b. the details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof.

To view and download the Notification, click here Notification for Accounting software

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