ICAI Points FAQs for MCA’s Obligatory Audit Path Norm

The CA Institute has issued Often Requested Questions (FAQs) to help its members in dealing with numerous sensible conditions arising from Authorities norm requiring firms to make use of solely accounting software program  having “audit path” options.

These FAQs are actually a part of the revised implementation information now issued by the Institute of Chartered Accountants of India (ICAI), sources mentioned.

Final 12 months, ICAI had come out with an implementation information that got here in helpful for members in guaranteeing compliance of the MCA’s diktat on audit path.

2021 mandate

MCA had initially in March 2021 mandated each firm that makes use of accounting software program to take care of its books of accounts to solely use software program that has the characteristic to file audit path of every transaction put via after April 1, 2022. Nevertheless, later this timeline was deferred to April 1, 2023.Additionally, firms had been mandated to create edit logs of every change made in account books with the right dates. As per the MCA’s rule amendments, firms should be certain that the audit path will not be disabled and auditors should report if this norm will not be adhered to by the corporate involved.

The CA Institute’s implementation information clarifies that an auditor will not be required to evaluate appropriateness of audit path of earlier years and the evaluation will likely be relevant for potential durations for monetary years commencing on or after April 1,2023.

The implementation information clarifies that the first duty for upkeep of audit path is that of the administration.