ICAI Audit Quality Maturity Model (AQMM) review shall be applicable to Practice Units which are subject to Peer Review and auditing specified entities
ICAI widens the scope of mandatory applicability of Audit Quality Maturity Model (AQMM)
The ICAI’s Audit Quality Maturity Model (AQMM) is a mandatory self-assessment framework for Chartered Accountant firms in India to evaluate their audit quality maturity, focusing on Practice Management, Human Resources, and Digital Competency.
Audit Quality Maturity Model is mandatory for Firms auditing the following entities excluding the Firms conducting only branch audit:
(a) A Listed Entity
(b) Banks other than Co-Operative banks (Except multi- state Co-operative banks)
(c) Insurance Companies
In 2025, ICAI widened the scope of mandatory applicability of AQMM version 2.0 making it mandatory in a phased manner from 01.04.2026 to 01.04.2027.
ICAI has today issued a clarification that the mandatory AQMM review shall be applicable to Practice Units undertaking audits of the holding/subsidiary/associates/ joint ventures of listed entity or banks other than Co-operative banks (except multi-state co-operative banks) or insurance companies which are subject to Peer Review.
The scope of mandatory applicability of AQMM version 2.0 has now been widened and made mandatory in a phased manner for the following categories of firms:
| S. No. | Category of Firms | Date of applicability (Peer Review conducted on or after) |
| 1. | Firms which are subject to Peer Review and auditing the Holding/Subsidiary/ Associates/Joint Ventures of the following entities: (a) A Listed Entity (b) Banks other than Co-operative banks (Except multi- state Co-operative banks) (c) Insurance Companies However, the firms conducting only branch audits are not to be covered |
01.04.2026 |
| 2. | Firms (referred to as ‘Practice Units’ in Peer Review Guidelines 2022′) which propose to undertake Statutory Audit of unlisted public companies having paid-up capital of not less than rupees five hundred crores or having annual turnover of not less than rupees one thousand crores or having, in aggregate, outstanding loans, debentures and st deposits of not less than rupees five hundred crores as on the 31 March of immediately preceding financial year |
01.04.2026 |
| 3. | Firms (referred to as ‘Practice Units’ in Peer Review Guidelines 2022′) which propose to undertake the Statutory Audit of entities which have raised funds from public or banks or financial institutions of over Fifty Crores rupees during the period under review or of any body corporate including trusts which are covered under public interest entities |
01.04.2027 |
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