Shine Appliances Ltd. uses a customised ERP system for recording all financial transactions. The management is concerned about compliance with Rule…

In order to demonstrate that the audit trail feature was functional, operative and was not disabled, a company would have to design and implement specific internal controls (predominantly IT controls) which in turn, would be evaluated by the auditors, as appropriate. An illustrative list of internal controls that may be required to be implemented and operated is given below: Controls to ensure that the audit trail feature has not been disabled or deactivated.Controls to ensure that User IDs are assigned to each individual and that User IDs are not shared.Controls to ensure that changes to the configurations of the audit trail are authorized and logs of such changes are maintained.Controls to ensure that access to the audit trail (and backups) is disabled or restricted and access logs, whenever the audit trails have been accessed, are maintained.Controls to ensure that periodic backups of the audit trails are taken and archived as per the statutory period specified under the provisions of the Act.