Ideas and model clauses for the Audit Trail Qualifications…. in Audit Reports

Small Company with semi dormant ,  like non moving companies, with no operations….

 

As per the communication with the management,  company is maintaining books that are not in electronic mode,  and hence, audit trail maintenance is not required.

Small Company with semi dormant ,  like non moving companies, with no operations….

 

Please refer the below extracts from Audit Report in respect to Audit Trail (When Audit Trail not maintained through out the year) and advise is it correctly reported ?

Auditor’s Modified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the matter described in the Basis for Modified Opinion section of our report the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31/03/2024, and its Profit for the year ended on that date.

Basis for Modified Opinion

The Company has used accounting software for maintaining its books of account, which did not have a feature of recording audit trail (edit log) facility throughout the year details in respect of which has been reported in the clause (b), clause (g) and point (vi) of clause (h) in the last part titled as ‘Report on other legal and regulatory requirements’ of this report.

Report on Other Legal and Regulatory Requirements

This report doesn’t include a statement on the matters specified in paragraph 3 and 4 of the Companies (Auditor’s Report) Order, 2020, issued by the Central Government of India, in terms of sub section 11 of section 143 of the companies Act, 2013 since in Our opinion and according to the information and explanation given to us, the said order is not applicable to the company.

As required by Section 143 (3) of the Act, we report that:

We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books except for the matters stated in the point(vi) of clause (h) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
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The Modifications relating to the maintenance of accounts and other matters connected therewith are as stated in the clause (b) above on reporting under section 143(3)(b) of the Act and point (vi) of clause (h) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
___ ii__________ iii ____________ iv _______ v ___________ vi Based on our examination which included test checks and information given to us, the Company has used accounting software for maintaining its books of account, which did not have a feature of recording audit trail (edit log) facility throughout the year for all relevant transactions recorded in the respective software, hence we are unable to comment on audit trail feature of the said software.