From the Financial Year 2023-24 the Auditor is duty bound to report on Audit Trail. For reporting on Audit Trail there can be 3 situations for the Auditor. In each situation reporting language will be different.
- Situation 1: Accounting software has the feature of recording audit trail (edit log) facility and was operated throughout the year.
- Situation 2: Accounting software has a recording audit trail (edit log) facility but not enabled/operated THROUGHOUT the year for all the transactions
- Situation 3: Accounting software did not have a feature of recording audit trail (edit log) facility
Situation 1: Accounting software has feature of recording audit trail (edit log) facility and was operated throughout the year.
AFFIRMATION: Draft of Affirmation in the last para of the main Audit Report
Based on our examination, which included test checks, the Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all the relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.
As provision to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.
Situation 2: Accounting software has recording audit trail (edit log) facility but not enabled/operated THROUGHOUT the year for all the transactions
DISCLAIMER: Draft of Disclaimer in last para of main Audit Report
Based on our examination, which included test checks, the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility, but the same was under process of implementation and was not enabled/operated throughout the year for all the relevant transactions recorded in the software. In absence of audit trail for the said period, the question of our commenting on whether the audit trail was tampered with, is not applicable.
As provision to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.
Situation 3: Accounting software did not have a feature of recording audit trail (edit log) facility
QUALIFICATION: Draft of Qualification in last para of main Audit Report
Based on our examination which included test checks and information given to us, the Company has used accounting software for maintaining its books of account, which did not have a feature of recording audit trail (edit log) facility throughout the year for all relevant transactions recorded in the respective software, In absence of audit trail for the said period, the question of our commenting on whether the audit trail was tampered with, doesn't arise.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024
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