Ease of Doing
Business for MSMEs: The Ministry of Corporate Affairs (MCA) is continuously
working towards driving transparency and strengthening the integrity of
financial reporting in the business. The notification pertaining to the new
audit trail rule is a step in this direction. This mandate is expected to be
implemented from April 1, 2022, for companies that are registered under the
Companies Acts in India. As per the notification “Every company which uses
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 each change made in books of account
along with the date when such changes were made and ensuring that the audit
trail cannot be disabled.”