Recently, India became the first country to introduce reporting requirements on the ‘Audit Trail’
to improve transparency and integrity of the financial reporting process. An Audit Trail is a key
example of regulators, corporations, and auditors working together to improve
transparency and trust in the financial reporting of companies. Investors consider this a step in
the right direction to further strengthen corporate governance. Regulators have decided to
incorporate this at an appropriate time in India’s growth journey, with the country attracting
substantial foreign investments. This step will assist regulators in ensuring data availability in
the country should there be a need for investigation into the company’s affairs.