ICAI launches Audit Quality Maturity Model version 2.0 (AQMM v 2.0)
ICAI launches Audit Quality Maturity Model version 2.0 (AQMM v 2.0). The AQMM v 1.0 has been made mandatory w. e. f. April 1, 2023, to the firms auditing the following entities:
(a) a listed entity; or
(b) Banks other than co-operative banks (except multi-state co-operative banks); or
(c) Insurance Companies.
However, firms doing only branch audits are not covered. The level of the firm obtained using AQMM v 1.0 is being reviewed by a peer reviewer and recorded on the website of ICAI against the validity of the firms’ peer review certificate. There is no change regarding the applicability of AQMM v 2.0. Therefore, AQMM v 2.0 is also mandatory for firms auditing the aforesaid entities.
Transitional Provisions:
To ensure a smooth transition from the previous version, AQMM v 2.0 will be applicable to firms (referred to as Practice Units in the context of Peer Review) which submit Form 1 – Application cum Questionnaire on or after 01.04.2025. This will cover firms for which the review period is from 01.04.2022 till 31.03.2025 (other than firms which have been constituted
during this period for which the review period shall commence from the date of constitution till 31.03.2025). The Practice Units may however adopt AQMM v 2.0 earlier.
AQMM v 2.0 – Sections and Scores
AQMM v 2.0 comprises the following three sections:
(a) Practice Management –Assurance
(b) Human Resource Management
(c) Digital Competency
The scoring pattern under the three sections is as follows: –
A firm should score a minimum 30% under each section to become eligible for getting a level assigned. If the firm fulfills the above-mentioned eligibility criteria, it shall compute the percentage of score achieved on the basis of the Actual Score divided by the Maximum Score (i.e. 600) multiplied by 100. Based on this percentage of score computed, the firm maturity level shall be determined.
Download Audit Quality Maturity Model version 2.0 Click Here >>
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