The Institute of Chartered Accountants of India ( ICAI ) recently released a revised edition of the “Implementation Guide on Reporting on Audit Trail under Rule 11(g) of the Companies (Audit and Auditors ) Rules, 2014” for CA Members.
This comprehensive guide aims to provide auditors with clarity and guidance on the reporting requirements related to the use of accounting software by companies.
Rule 11(g) and its Evolution
The Ministry of Corporate Affairs introduced Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, mandating auditors to report on the use of accounting software with audit trail features by companies. This rule ensures the maintenance of accurate and unaltered records throughout the year.
In March 2023, the Auditing and Assurance Standards Board (AASB) of ICAI issued the “Implementation Guide on Reporting under Rule 11(g),” offering initial guidance. Subsequently, due to practical queries from members, the AASB decided to enhance the guide, leading to the release of this revised edition.
Inclusion of Frequently Asked Questions (FAQs): The revised guide incorporates a dedicated section of FAQs, addressing practical situations faced by auditors while reporting under Rule 11(g). These FAQs were developed by a study group and finalized with contributions from AASB members.
Expert Contributions: CA. Vishal Doshi, Vice-Chairman of AASB, expressed gratitude to CA. (Dr.) Sanjeev Kumar Singhal, Chairman, and CA. Ranjeet Kumar Agarwal, Vice-President, ICAI, for their guidance and support. The study group, comprising eminent members, played a crucial role in developing and finalizing the FAQs.
The Implementation Guide provides detailed guidance on various aspects, including management’s responsibility, preservation of audit trails, audit approach, and illustrative wordings for reporting. It aims to enhance auditors’ ability to comply effectively with Rule 11(g).
The Board acknowledged the active contribution of its members and the study group, emphasizing the collaborative effort in finalizing the revised Implementation Guide.
CA. Aniket Sunil Talati, Former President of ICAI, expressed confidence that the revised Implementation Guide would be well-received by members and other interested readers. This comprehensive resource is designed to empower auditors and facilitate compliance with the reporting requirements of Rule 11(g).
For more information, auditors and interested parties are encouraged to refer to the complete Implementation Guide available on the ICAI website.
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