CA Amrita Chattopadhyay
Quick Summary
In today's regulatory landscape, data security is crucial for ensuring compliance with legal mandates, particularly those related to audit trails. Section 128 of the Companies Act, 2013, requires every company to prepare and maintain accurate books of account that reflect the true state of the compa
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The Companies Act 2013 requires every company to prepare and maintain accurate books of account reflecting the true state of affairs, kept at the registered office using an accrual-based double-entry system.
Rule 9.1.3 of the Companies (Accounts) Rules, 2014, stipulates that electronic records must be accessible in India at all times.
For financial years beginning on or after April 1, 2023, companies using accounting software must ensure it includes an audit trail feature that records every transaction, creates an indelible edit log, and cannot be disabled or tampered with.
Data centre security protects the physical and digital environments where audit trail data is stored, ensuring its integrity, preventing tampering, and maintaining its accessibility for compliance and forensic analysis.
By securing the systems that record user actions, data centre security ensures that the audit trail accurately attributes activities to specific individuals or systems, enabling accountability.
The article highlights the significance of preserving audit trails for eight years, linking this requirement to the security of the data centres where these records are stored.
CAclubindia
