SAP Compliance: MCA Rule 11(g) Audit-Trail Controls

1. Presented by: Abhilash MCA Rule 11(g)

2. MCA Rule 11(g) is a crucial regulatory mandate requiring Indian companies to maintain immutable audit trails for all accounting transactions in ERP systems like SAP. This rule emphasizes accountability, traceability, and data integrity, ensuring that logs are tamper-proof and retained for at least 8 years. Compliance protects against fines and strengthens stakeholder trust in a digital economy. Introduction

3. MCA Rule 11(g) Overview 01

4. MCA Rule 11(g) mandates un-editable audit trails for every transaction, with logs retained for 8 years. It requires daily operational tracking of audit trail status to confirm continuous activation and integrity. This regulation supports transparency and builds accountability within financial record keeping, particularly for ERP systems such as SAP. Regulatory Requirements and Importance

5. The rule prohibits deletion or alteration of logs and demands near real-time visibility of any changes. It emphasizes the need for daily monitoring and alerts to detect unauthorized modifications. The legislation also ensures audit trails reflect true, unaltered historical records for statutory audits and compliance reviews. Key Provisions of MCA Rule 11(g)

6. Impact on Indian Enterprises and SAP Systems MCA Rule 11(g) imposes stringent requirements on Indian enterprises to maintain immutable audit trails for all accounting transactions within their SAP systems. This demands continuous traceability and accountability, which is challenging as SAP’s native logs can be disabled by administrators, creating compliance risks. Enterprises must rethink their IT controls to ensure data integrity, audit readiness, and stakeholder trust in a digital-first environment.

7. SAP Compliance Implementation 02

8. A thorough evaluation is required to identify existing audit log coverage in SAP Application and HANA databases. This includes reviewing critical tables—about 700 in S/4HANA—and checking if table logging is enabled for DDL/DML changes. Gap analysis helps understand vulnerabilities, especially as native logging in SAP can be easily disabled or modified by administrators. Assessment of Current Logging Mechanisms

9. Design, Configuration, and Access Controls Effective compliance needs configuring table logging appropriately, enabling SAP Security Audit Logs and DB audit policies for deeper traceability. Access controls must prevent unauthorized modifications or deletions of logs. Removing regular authorizations for audit log maintenance strengthens governance, ensuring logs remain tamper-proof and continuously active per regulatory mandate.

10. Automated reporting systems are essential to provide daily status on audit logging, maintaining dashboards for internal and auditor reviews. Periodic system checks ensure continuous logging activation, and logs must be securely archived for at least eight years. These steps support compliance evidence and prepare organizations for statutory audits under MCA Rule 11(g). Reporting, Monitoring, and Audit Readiness

11. MCA Rule 11(g) represents a critical shift from routine compliance to strategic governance, requiring Indian enterprises to enforce immutable audit trails in SAP systems. Addressing inherent SAP logging limitations through assessment, robust configuration, strict access controls, and proactive monitoring ensures sustained compliance. This approach not only mitigates regulatory risks but also enhances organizational transparency and trust in a digital economy. Conclusions

12. Do you have any questions? For more visit: https://togglenow.com 2XXX THANK YOU Please keep this slide for attribution