Highlighting a significant amendment made by the Ministry of Corporate Affairs (MCA), with effect from 1st April, 2021.
As per a notification issued by the MCA, every company that uses an 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 every change made in the books of account along with the date of such change. It is also mandatory that the audit trail cannot be altered or disabled.
Non-compliance with the above could entail incremental monetary fine. The detailed notification is shared with this update.
