ICAI Implementation Guide on reporting on accounting software and audit trail
The Ministry of Corporate Affairs vide notification dated March 24, 2021 issued the Companies (Audit and Auditors) Amendment Rules, 2021 which made various changes in Rule 11 of the Companies (Audit and Auditors) Rules, 2014.
The Rule 11(g) requires auditors to report on the use of accounting software by company for maintaining its books of account which has a feature of recording audit trail. The said requirement was postponed subsequently. However MCA vide notification dated 31st March 2022, postponed the requirement of compulsory audit trail in company accounting software to financial year commencing on or after 01.04.2023.
ICAI has issued an Implementation Guide for providing guidance to the member chartered accountants on this new reporting requirement.
The Implementation guide consists of Scope and applicability of the provision, responsibility of the management and the auditor. The guide also include guidance in audit approach examining the audit trail.
The Guide gives Illustrative reporting and points of special Consideration in case of Fraud Scenarios.
ICAI Guide accounting on accounting software and audit trail Click Here >>
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