Audit trail (edit log): the rule for companies
1 min read
Updated 30 Sep 2026
4 views
AI summary
Why every company's accounting software must keep a record of every change, and what it means for you.
4 sections
The rule
From 1 April 2023, every company that keeps books in accounting software must use software that:
- Records an audit trail of every transaction: who created it, who changed it, when, and what changed.
- Does not allow the audit trail to be turned off.
- Keeps the audit trail for 8 years.
The source is Rule 3(1) of the Companies (Accounts) Rules, 2014. The statutory auditor must report whether the rule was followed.
What this means in practice
- Do not delete and re-enter vouchers to "clean up". Edit or cancel them, so the trail shows the change.
- Give each user a separate login. A shared login defeats the purpose.
- Back-dated entries after the books are closed will stand out in the log.
LLPs, firms and proprietors
The rule is written for companies. For others it is good practice, and banks and auditors increasingly expect it.
In Hisab Central
Every change is recorded in the AI Audit Log. Add users with their own access (Alt+U) so the log shows who did what.
PreviousCash basis vs accrual basis of accounting Next in Accounting Concepts Foreign currency transactions and exchange differences
Was this guide helpful?