Audit Trail (Rule 3, Companies (Accounts) Rules)
Rule 3 of the Companies (Accounts) Rules, in force since 1 April 2023, requires companies using accounting software to maintain an audit trail of every transaction — one that cannot be disabled — recording every edit with the date of the change.
The rule effectively mandates that accounting software used by Indian companies keep a non-disableable log of who changed what and when, for every transaction. Statutory auditors are required to report on whether the audit trail feature was enabled throughout the year and whether it was tampered with.
This turns 'can you disable the audit trail' from a feature question into a compliance question — software that allows disabling it, even via an admin setting, creates an audit finding.
How AssetIQ helps
AssetIQ's audit trail is a platform primitive: every create, update, state transition, approval, and posting — by a human or an AI agent — writes an immutable, hash-chained record, with no application path or permission that can disable or edit it.
See the Audit Trail Agent →