Archives April 2023

The rules are however silent on the following aspects:
a) The Rules don’t specify the fields or data sets for which audit trails are required to be maintained – whether transactional data and/or data pertaining to the transaction.
b) The word accounting software has not been defined anywhere in the act/rules. Will it include fixed asset registers, HR related documents and data/software, time sheets of employees, purchase orders, changes to vendor master data, or any other software with which the basic accounting software has an interface. If it so includes then an audit trail for all those associated software will also have to be verified. c) Accounts rules requires back up to be maintained on a daily basis, does it mean that audit trail back up also needs to be taken on daily basis? Doing so would require huge IT space for which companies need to plan in advance. d) The accounts rules mandate that companies should use accounting software which has a feature of recording audit trail….. In case a company is not able to procure such a software or has procured midway will it be construed as non-compliance with the Companies Act, 2013 for which the company, its Directors and its KMP may be penalized. Some thoughts on audit trail and audit requirements
1) No other country in the world has such a mandatory requirement for maintaining books of accounts and for auditors of companies to comment on audit trail. A spate of failures of financial institutions and large corporations has led the government to bring about these measures whereby the government hopes to get details of transactions which have been deleted/modified. One is not sure how such audit trail data would even be helpful as companies will only give justification as to why the deletion or modification was done, if at all the audit trail data is available to government authorities when it is required.
2) Work of finance professionals is going to increase as they have to pass entries with 100% accuracy first time around. Any modification/deletion will leave an audit trail scar for them to answer.
3) This requirement casts a huge responsibility for small companies who cannot afford such a software and even if they can afford the cost of maintaining books of accounts in such a software is going to be a challenge in terms of cost and finding right man-power.
4) Already this audit trail requirement has been postponed twice, so one needs to watch the space for notification/guidance from MCA or ICAI and typically this is going to come (if at all) only on 31st March 2023 (Friday). If it does not come, then ALL companies will be caught in the wrong foot from the first day of the new financial year if they are not adequately prepared.
5) IT systems of companies was subject to audit by auditors only in large companies, now with the introduction of audit trail and reporting thereon, auditors will have to do an audit of IT environment of all companies. This is going to consume more audit time and will result in higher audit cost for companies.
6) Auditors should be equipped (in terms of IT knowledge and related resources) for performing this kind of audit and of course that is going to come only from 1st April 2023, so auditors might have some time to catch up.
7) ALL companies will have to immediately take a look at their accounting software and check if it has all these features. They will have to get in touch with their auditors and understand their requirements as lack of such co-ordination will lead to missed communication during audit time.

As Per Information From

Edit Log in TallyPrime – All You Need to Know

Edit Log in TallyPrime allows you to keep a trail of each activity performed in transactions and masters to help you have a better internal control over your Company data. Irrespective of the nature of changes made in the data – financial, functional, or internal, the Edit Log feature keeps a trail of the activities in Company data.

Edit Log enables: 

  • Regular monitoring of the actions such as creation, alteration, and deletion in transactions and masters in your Company data.
  • Simplicity in auditing your account books.
  • A practice of making well-informed decisions in terms of working with Company data.

The Edit Log feature is introduced in TallyPrime Edit Log Release 2.1 and TallyPrime Release 2.1.

Tally products with Edit Log

With Release 2.1, we are giving you the flexibility to choose between the following products:

  • TallyPrime Edit Log: If your business needs to track all activities for a better internal control, or statutory requirements such as Audit Trail, mandated by Ministry of Corporate Affairs (MCA), India, then you will need this product. Edit Log cannot be disabled in this product.
  • TallyPrime: If you want to maintain trails for internal audit purposes or view logs intermittently, then you can leverage the Edit Log feature in your day-to-day business operations.
    By default, TallyPrime does not track activities in your transactions and masters. You can enable or disable Edit Log, when needed.

TallyPrime Edit Log and TallyPrime have the same set of features to run your business, including Edit Log. However, only TallyPrime Edit Log meets the Audit Trail compliance requirements.

If you want to continue using TallyPrime, then you can upgrade to the latest release. To know how to do it, refer to Update a TallyPrime Release.

If you want to use TallyPrime Edit Log, then you can upgrade your existing TallyPrime or Tally.ERP 9 application. Alternatively, you can install TallyPrime Edit Log in a separate folder.

You can use TallyPrime Edit Log with either your existing TallyPrime license or a new license.

You can download TallyPrime Edit Log from the Tally Solutions website. To know how to install TallyPrime Edit Log, refer to Install TallyPrime Edit Log.

If you are a new user, activate your license after installing TallyPrime. If you are upgrading from an earlier version of TallyPrime, your TallyPrime Edit Log will start in licensed mode. To know more, refer to License Activation | Reactivation | Surrender | Update.

If you are using TallyPrime or Tally.ERP 9, then you will need to migrate data to TallyPrime Edit Log. To know more, refer to Migrate Data to TallyPrime Edit Log.

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