A Breief on Audit Trail
This document discusses a specific rule (Rule 11(g)) introduced under the Companies Act, 2013 in India. The rule focuses on the use of accounting software by companies and requires auditors to report on certain aspects related to the software. In simple terms, this passage is talking about new rules and requirements for companies related to how they maintain their financial records using accounting software. Here are the key points: Background: There are rules (Section 143(3) of the Companies Act, 2013) that auditors must follow when reporting on a company's financial status. New rules (Rule 11 of the Companies (Audit and Auditors) Rules, 2014) were introduced in 2021 and amended in 2023. Applicability : This rule was supposed to apply from April 1, 2021, but it was deferred to April 1, 2022, and later to April 1, 2023. Categories to which the said requirement will be applicable are stated as follows: All Public Companies, Private Limited Compani