MCA Audit Trail Compliance Rules: Rule 3(1) & Auditor Rule 11(g) Master Guide
July 24, 20269 min readAkib Husain
MCA Audit Trail Compliance Rules: Rule 3(1) & Auditor Rule 11(g) Master Guide
Legal & statutory guide for corporate directors, company secretaries, and auditors on MCA audit trail mandates, 8-year log retention, and Tally Prime compliance.
Who is this for: Corporate Law Compliance
Quick Answer: What Are the Legal MCA Audit Trail Compliance Rules?
Under the proviso to Rule 3(1) of Companies (Accounts) Rules 2014, all companies registered under the Companies Act must use accounting software with an un-deletable audit trail edit log feature. Statutory auditors must report compliance under Rule 11(g) in their annual audit reports.
- Applies to Private Ltd, Public Ltd, OPCs, and Section 8 companies.
- Edit log feature must operate continuously without option to disable.
- Auditors report compliance annually in financial statements under Rule 11(g).
- Logs must be retained for 8 years alongside company books of account.
1. Legal Statutory Framework Comparison
| Statutory Provision | Whom It Applies To | Mandate & Requirement |
|---|---|---|
| Rule 3(1) Accounts Rules | Company Management & Directors | Maintain books using software with un-deletable audit trail. |
| Rule 11(g) Audit Rules | Statutory Auditors (CAs) | Verify & report continuous edit log operation throughout the year. |
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Last Verified: July 24, 2026
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