Regulation map
When an agent posts the entry.
Rule 3(1), Rule 11(g) and section 128(5), mapped to elan1 Govern and elan1 Act, for books kept in accounting software. Free to read, no form.
- Last reviewed
- Access
- Read free · no form
In short
The short answer.
What is the MCA audit trail rule?
Since 1 April 2023, every Indian company that keeps its books in accounting software must use software that records an audit trail of every transaction, creates an edit log of each change with its date, and cannot have the audit trail disabled. Auditors report on it under Rule 11(g).
- Applies to
- Every company that keeps its books of account in accounting software. Financial year 2025–26 is the third year audited under the rule.
- Key dates
- 1 Apr 2023The audit-trail requirement applies, after two deferrals: the first day of financial year 2023–24.
- FY 2025–26The third year audited under the rule.
Clause by clause
Each duty, and the control that answers it.
| Clause, and what it asks | elan1 control | Mapped to | Claim IDs |
|---|---|---|---|
| Companies (Accounts) Rules, 2014, Rule 3(1)Software that records an audit trail of every transaction, creates an edit log of each change with the date it was made, and does not allow the audit trail to be disabled. | elan1 Govern sits between an agent and the accounting system. A change reaches your software only after Govern allows it or a person you name approves it, and then through the software's own interface, so its audit trail records it. |
| |
| Rule 3(1), for ERP changesThe audit trail must not be disabled. | For ERP changes rather than entries, elan1 Act checks that a change keeps the audit trail intact before anyone approves it. |
| No claim ID |
| Companies (Audit and Auditors) Rules, 2014, Rule 11(g)Auditors report whether the software had the feature, whether it operated throughout the year for all relevant transactions, whether it was tampered with, and whether the trail has been preserved. | Govern export: a record of the agent's identity, the rule, the approver and the outcome, which your auditor can check offline. The Act Assure crew keeps receipts ready for Rule 11(g) reporting. |
| |
| Companies Act, 2013, section 128(5)The trail is preserved for not less than 8 financial years. | Govern keeps its record for as long as your policy sets, so it can be kept for as long as the books themselves. |
| No claim ID |
Mappings are drafts for your counsel and auditors. They are not certification, legal advice or regulator approval.
What this map does not claim.
- Govern's record sits beside your software's audit trail. It does not replace it, and nothing here suggests the rule can be met any other way.
By industry
Where this rule shows up.
Retail, Consumer and Commerce
MCA audit trail
Govern receipts.
- elan1 Govern
Manufacturing and Distribution
MCA audit trail, Companies (Accounts) Rules 2014, Rule 3(1)
Act, Govern receipts.
- elan1 Act
- elan1 Govern
Professional Services and GCCs
MCA audit trail, Rule 11(g), s.128(5)
Govern receipts and export.
- elan1 Govern
Read more
The explainer, and the official text.
Regulation watch
MCA audit trail, 3 years on: when an agent posts the entry
The rule assumed people make edits. What changes when an agent does.
4 min read
Perspectives
The discount field that broke a GST return (an illustrative case)
One harmless-looking ERP change, three weeks of rework, and the check that would have caught it.
4 min read
Official text.
- Ministry of Corporate Affairs: Companies (Accounts) Rules, 2014 and amendments (opens mca.gov.in, external site)
- India Code: Companies Act, 2013 (opens indiacode.nic.in, external site)
- Institute of Chartered Accountants of India: implementation guide on reporting under Rule 11(g) (opens icai.org, external site)
Questions
MCA audit trail, plainly.
The rule assumed people make edits. When an agent posts the entry, the log still records what changed and when, but not who answers for it, unless you design for that. Give each agent its own identity, keep it inside the software's interfaces, and link each edit to the rule or person that allowed it.
After two deferrals, the requirement applied from 1 April 2023, the first day of financial year 2023–24. Financial year 2025–26 is the third year audited under it. Auditors report on the feature under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, including whether it was tampered with.
Rule 11(g) asks auditors whether the audit trail has been preserved as the law on record retention requires. Section 128(5) of the Companies Act, 2013 sets that period at not less than 8 financial years. A record of the authority behind each edit an agent makes should be kept at least as long.
No. Keep it: the rule requires accounting software that records an audit trail which cannot be disabled. elan1 Govern's record sits beside your software's audit trail and adds what the edit log cannot: the agent's identity, the rule, the approver and the outcome. Each record is signed and hash-chained, so your auditor can check it offline when reporting under Rule 11(g).
No. Mappings are drafts for your counsel and auditors. They are not certification, legal advice or regulator approval. Each row names the clause or duty, what it asks, the elan1 control that answers it and, where one is assigned, the claim ID behind it, so your counsel and auditors can test each mapping against the receipts.
Other maps
The other rules we map.
- Allowed · Approved by Asha R.
- Held for CFO
- Refused · rule 4.2