An Audit trail is a log of activities performed related to any transaction. Hence, it is also called an edit log. This concept is widely used in Accounting. Thus, the log can be used to trace the creation, alteration, and deletion of the record. Hence, especially the auditor can verify the details of such activities during the audit process. See below how to activate the audit trail in tally prime.
Audit Trail Applicability in India
The Ministry of Corporate Affairs has made it mandatory to keep the audit trail/edit log w.e.f 01.04.2022. In order to implement this rule, necessary amendments have been made by the government. However, later this has been postponed until 1st April 2023.
According to the revised rule, for the financial year commencing on or after the 1st day of April 2022, every company shall use only such accounting software which has a feature of recording the audit trail of each and every transaction. The software should be able to create a log of each change made in the books of account along with the date when such changes were made.
This has reference to the below MCA notifications:
How to maintain Audit Trail in Tally Prime?
The latest version of Tally Prime 2.1 provides features for maintaining the audit trail. The new feature is called the “Edit log”. The new users can download the software from their website. However, the existing tally prime users need to upgrade to version 2.1, if not already done.
Thus, the edit log in tally creates the log of created, modified, and deleted transactions with the name of its user. The system records the activities of transactions related to items, ledgers, and groups. Alternatively, this feature can be accessed from the tally prime daybook.
See: Tally prime shortcut keys
How to Enable Edit log in Tally prime?
Time needed: 2 minutes
From the Gateway of tally prime
- press ALT + K or Click on Company >> Alter from the Top menu.
- Press F12 from the company alteration screen
- Enable “set edit log Applicability” to Yes
- Press CTRL + A to Save
How to access Edit log activities?
The edit activities can be accessed from the following screens:
- Click Company >> Edit log from the top menu
- Day Book
- Item, Ledger, Group Alteration screen
You may also see the below official video from Tally solutions guiding the Tally prime feature.