ICAI expands mandatory applicability of audit quality maturity model
ICAI Expands Mandatory Applicability of Audit Quality Maturity Model (AQMM) & Introduces Public Disclosure of AQMM Levels
The Institute of Chartered Accountants of India (ICAI), through its Centre for Audit Quality, has announced an expansion in the mandatory application of the Audit Quality Maturity Model (AQMM) Version 2.0.
Current Requirement:
AQMM is presently mandatory for firms auditing:
- Listed companies
- Banks (other than co-operative banks, except multi-state co-operative banks)
- Insurance companies
(Firms conducting only branch audits are excluded)
New Scope – Mandatory Implementation in Phases
| S. No. | Category of Firms | Applicable for Peer Reviews conducted on or after |
|---|---|---|
| 1 | Firms auditing the holding, subsidiary, associate, or joint venture of: • Listed companies • Banks (other than co-operative banks, except multi-state co-operative banks) • Insurance companies (However, the firms conducting only branch audits are not to be covered.) | 1 April 2026 |
| 2 | Firms (Practice Units under Peer Review Guidelines, 2022) undertaking statutory audits of unlisted public companies meeting any of these thresholds: • Paid-up capital ≥ ₹500 crore • Annual turnover ≥ ₹1,000 crore • Aggregate outstanding loans, debentures, and deposits ≥ ₹500 crore (as on 31 March of the preceding financial year) | 1 April 2026 |
| 3 | Firms (Practice Units) undertaking statutory audits of entities that: • Raised funds exceeding ₹50 crore from public, banks, or financial institutions during the review period • Any body corporate, including trusts, classified as public interest entities | 1 April 2027 |
Disclosure of AQMM Levels
The AQMM level of each firm, as assessed, will now be:
- Listed on the ICAI website by the Peer Review Board, categorised level-wise
- Printed on the Peer Review Certificate issued to the firm
These measures aim to enhance audit quality transparency and encourage firms to strengthen their systems in line with AQMM standards.
Announcement: https://resource.cdn.icai.org/87517caq-aps1943.pdf
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