IT general controls
Review of user access, password and role management, change management, backups, data security and continuity arrangements.
IT & Systems Audit and ERP Advisory in Kochi, Kerala
T K Chandy & Associates provides IT systems audit and ERP advisory in Kochi for companies and growing businesses. We review IT general controls and application controls, check that your accounting software keeps the audit trail (edit log) the Companies Act requires, help you choose and migrate to a new ERP, and design accounting manuals and internal controls that work inside your system.
- Led by a chartered accountant since 1994
- Member of SGA World International
- Kakkanad, Kochi
At a glance
IT systems audit at a glance
- Who needs it: Companies that must keep an audit trail in their accounting software, and any business relying on an ERP for billing, stock, payroll and reporting.
- What we review: IT general controls (access, changes, backups), application controls in your ERP, and the audit trail / edit log required under the Companies Act.
- What you receive: A written systems audit report with risk-rated findings, an audit trail compliance review, and practical fixes your team or vendor can implement.
- ERP advisory: Software selection, migration planning and data checks, accounting manuals and internal control design, independent of any software vendor.
Your accounts are only as reliable as the system that produces them. When too many people have administrator access, when entries can be edited without a trace, or when a migration to a new ERP carries over wrong opening balances, the errors flow straight into your financial statements, GST returns and bank reports.
At T K Chandy & Associates, our chartered accountants in Kakkanad look at your systems through an auditor's eyes. We review IT controls and the audit trail that company law now requires, help you choose software that fits your business, and support ERP migrations so the data that comes out of the new system can be trusted. We are independent of software vendors and do not sell or implement software, so our advice is about your controls and your needs.
Systems audit and ERP advisory
Who Uses Our IT and Systems Audit Services?
We work with businesses across Ernakulam and Kerala whose accounting and operations run on software, from a single Tally installation to multi-module ERPs. Each engagement is led by a chartered accountant.
- Companies needing to show audit trail compliance under rule 11(g)
- Manufacturers and distributors running stock, billing and production on an ERP
- IT and service companies in and around Infopark and Kakkanad
- Growing MSMEs outgrowing their current accounting software
- Groups and subsidiaries that need consistent controls across entities
- Boards and audit committees wanting an independent view of IT risk
What the engagement covers
What Does Our IT and Systems Audit Include?
Audit trail (edit log) review
A check that your accounting software records every change with date and user, cannot be disabled, and is preserved as required.
Application controls
Testing of approval workflows, validations, segregation of duties and interfaces in your ERP's sales, purchase, stock and payroll modules.
Software selection
Documenting your requirements, shortlisting options and evaluating them against controls, reporting, GST and scalability needs.
ERP migration support
Chart of accounts mapping, opening balance and master data checks, parallel runs and post-go-live reconciliation.
Accounting manuals and controls
Accounting policies, process manuals, delegation of authority and internal controls designed to work inside your system.
Audit trail rules
What Does the Law Require on Audit Trail in Accounting Software?
Since 1 April 2023, companies that keep books in accounting software must meet these requirements under the Companies Act, 2013 and its rules:
- Audit trail feature (rule 3(1), Companies (Accounts) Rules, 2014)
- The software must record an audit trail of each and every transaction, creating an edit log of each change with the date of the change
- Cannot be disabled
- The audit trail must not be capable of being switched off
- Auditor reporting (rule 11(g), Companies (Audit and Auditors) Rules, 2014)
- The auditor reports whether the software had the feature, whether it operated throughout the year for all relevant transactions, whether it was tampered with, and whether it was preserved
- Preservation
- Books, including the audit trail, kept for at least eight years under section 128(5)
- Electronic backups
- Backups of books kept in electronic form must be maintained on servers physically located in India, on a daily basis
Audit trail failures are reported in the statutory auditor's report. A review before the year end gives you time to fix settings, upgrade software or document workarounds.
Our process
How Does an IT Systems Audit Work With Us?
Step01
Understand your systems
We map the software, modules, servers or cloud services, interfaces and the people who use them, and agree the scope.
Step02
Risk assessment
We identify the controls that matter most for your financial reporting, such as access to masters, posting rights and period locks.
Step03
Testing
We review settings and user lists, test samples of changes and transactions, examine the edit log and check backup and restoration records.
Step04
Findings and recommendations
Findings are rated by risk and discussed with management and your software vendor, with practical fixes.
Step05
Follow-up
We check that agreed actions have been implemented before the statutory audit or the next review.
ERP advisory
How Do We Help With ERP Selection and Migration?
We support you from the first requirement list to the first clean month-end in the new system. Examples of software we work with include Tally, Zoho, ERPNext and SAP; we have no partnership or reseller arrangement with any vendor.
Requirements
Documenting accounting, inventory, GST, e-invoicing, payroll and reporting needs with your team
Evaluation
Comparing shortlisted software on controls, audit trail, reports, cost of ownership and vendor support
Data migration
Mapping the chart of accounts, cleaning masters and agreeing opening balances with the audited trial balance
Testing and parallel run
Testing key processes and running old and new systems side by side for a period
Go-live review
Reconciling the first months' results and checking that controls and the audit trail work as designed
Be review-ready
What Information Do We Need for a Systems Audit?
Having these ready makes the review faster and keeps the fee down:
- List of software, versions and modules in use
- Hosting details (on-premise server or cloud)
- User list with roles and access rights
- Audit trail or edit log settings and reports
- Backup schedule and recent restoration test
- Change and customisation records
- Vendor contracts and support agreements
- Approval matrix and delegation of authority
- Period-closing and lock procedures
- Interfaces with banks, GST and e-invoicing portals
- Existing accounting or process manuals
- Previous audit observations on IT
Worked example
Example: Audit Trail Review and ERP Move for a Kochi Trading Company
A private limited company in Ernakulam trading in electrical goods ran its accounts on an older accounting package, with billing on a separate system at two branches.
- Our review found that the edit log in the older software version could be switched off, and that it had been turned off for several months to speed up the system.
- Four staff shared one administrator login, so changes could not be traced to individuals, and backups were kept only on an external drive in the office.
- The company decided to move to a single ERP. We documented its requirements, helped evaluate three options and mapped the chart of accounts and item masters.
- Before go-live we agreed the opening balances with the audited trial balance and ran the old and new systems in parallel for one month.
The new system went live with individual logins, role-based access, the audit trail permanently enabled and daily backups. The statutory auditor was able to report on rule 11(g) with clear evidence for the new period.
Fees and timing
How Much Does an IT Systems Audit Cost in Kochi?
There is no fixed scale. The fee depends on the number of systems, modules and locations, whether the software is standard or heavily customised, the number of users and entities, whether you need a focused audit trail review or a full IT controls review, and, for ERP work, how much data migration and testing support you need. A focused audit trail review for a single company is usually a short engagement; ERP selection and migration support is planned in phases over the project. We quote a fixed fee in writing after an initial discussion about your systems.
Why T K Chandy & Associates
Why Choose Us for IT Systems Audit and ERP Advisory?
CA-led since 1994
Systems reviewed by experienced chartered accountants who know what auditors, banks and tax authorities expect from your data.
Vendor-independent
We do not sell or implement software, so our evaluation is based only on your needs and controls.
Connected to your audit
Findings aligned with the statutory audit, internal financial controls and rule 11(g) reporting.
GST and tax aware
We check that your ERP handles GST, e-invoicing and TDS correctly, not just that it posts entries.
Based in Kakkanad
Close to Infopark and the business areas of Ernakulam, so on-site reviews are easy to arrange.
Confidential handling
Access to your systems is controlled, time-bound and documented, under ICAI ethics.
Related services
Which Other Services Work With a Systems Audit?
Statutory audit
Annual audit including audit trail reporting under rule 11(g).
Internal audit
Ongoing reviews of processes and controls inside your ERP.
Management consultancy
Process redesign, MIS and reporting to support decisions.
Virtual CFO
Finance leadership to run the ERP and reporting after go-live.
Accounts outsourcing
Bookkeeping in your chosen software, ready for audit.
Stock & inventory audit
Verification of stock data held in your ERP's inventory module.
Get a quote
Request an IT systems audit or ERP advisory quote
Tell us the software you use, the number of users and locations, and whether you need an audit trail review, a controls review or ERP selection support. We will reply with the scope, timetable and a fixed fee.
Prefer to talk now? Call +91 484 354 1530 or email [email protected].
Who prepared this page
Written and reviewed by chartered accountants at T K Chandy & Associates
This page is prepared by the audit and tax team at our Kakkanad, Kochi office and checked against the Companies Act, the Income-tax Act, GST law and ICAI standards. It is reviewed whenever the rules change.
- Last reviewed 29 October 2026
- Led by T K Chandy Vaidyan, chartered accountant since 1994
- Member of SGA World International
Have a question about your business?
Tell us your entity type, what you need and any deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
IT systems audit and ERP advisory in Kochi – frequently asked questions
Short answers to the questions clients in Kochi ask us most. Still unsure?
Talk to our team01.What is an IT systems audit?
An IT systems audit is a review of the controls around the software and hardware that produce your accounting and business data. It checks who can access the system, how changes are controlled, whether data is backed up and secure, and whether the software processes transactions correctly.
02.What are IT general controls?
IT general controls are the controls that apply across your systems, such as user access management, password policies, change management, backups, data security and business continuity. Auditors rely on them before trusting reports produced by the system.
03.What is the audit trail requirement under the Companies Act?
Since 1 April 2023, every company that keeps books in accounting software must use software that records an audit trail of each transaction, with an edit log of every change and its date, and the audit trail must not be capable of being disabled.
04.What does the auditor report under rule 11(g)?
The auditor reports whether the company used accounting software with an audit trail feature, whether it operated throughout the year for all relevant transactions, whether it was tampered with, and whether the audit trail was preserved as required.
05.Does Tally have an audit trail feature?
Recent versions of Tally include an edit log feature designed for this requirement. Whether your installation complies depends on the version, the settings and whether the feature stayed on for the whole year, which is what a review checks.
06.How long must the audit trail be kept?
The books of account, including the audit trail, must be preserved for at least eight years under section 128(5) of the Companies Act, 2013.
07.Does the audit trail rule apply to LLPs and partnership firms?
The rule 11(g) requirement is in the Companies Act rules and applies to companies. LLPs and firms are not covered by it, but keeping an edit log is still good practice and helps in tax and bank reviews.
08.Must our accounting data be backed up in India?
Yes, for companies. Backups of books kept in electronic form, including where the books are kept outside India, must be maintained on servers physically located in India on a daily basis.
09.How do we choose the right ERP for our business?
Start with your processes and reporting needs, not the software. List what you need for accounting, inventory, GST and e-invoicing, payroll and approvals, then compare options on fit, controls, cost of ownership, vendor support and growth. We help document and evaluate this independently.
10.Do you implement or sell ERP software?
No. We are independent of software vendors. We help you select software, oversee the accounting side of the migration and review controls; implementation is done by your chosen vendor or partner.
11.What are the biggest risks in an ERP migration?
Wrong opening balances, poorly cleaned customer, supplier and item masters, untested GST settings and lost history are the most common problems. A parallel run and a reconciliation with the audited trial balance reduce these risks.
12.Does our ERP need to support e-invoicing?
If your aggregate turnover is ₹5 crore or more, you must generate e-invoices for business-to-business supplies, and businesses with turnover of ₹10 crore or more must report invoices to the invoice registration portal within 30 days. Your ERP should support this directly or through an integration.
13.What is an accounting manual?
An accounting manual documents your accounting policies, chart of accounts, posting rules, approval limits and month-end procedures. It keeps entries consistent across staff and branches and makes audits faster.
14.How often should we have an IT systems review?
A full review every year or two is common, with a focused audit trail check before each year end. Reviews are also useful after a major software change, a merger or a fraud incident.