ICAI Expands Mandatory Audit Quality Maturity Model – The Institute of Chartered Accountants of India (ICAI) has expanded the reach of its Audit Quality Maturity Model (AQMM) version 2.0 to cover a broader range of audit firms, in a move aimed at improving audit quality and strengthening public trust.
Earlier, the AQMM requirement applied only to firms auditing listed companies, banks (excluding co-operative banks except multi-state ones), and insurance companies, with branch audit firms kept outside its scope. Now, ICAI has widened this requirement in a phased rollout. Check the official announcement here.
Starting April 1, 2026, the model will also apply to firms auditing holding, subsidiary, associate, or joint venture companies of the above entities, except those conducting branch audits. This extension includes firms conducting statutory audits of unlisted public companies with paid-up capital of ₹500 crore or above, annual turnover of at least ₹1,000 crore, or total outstanding loans, debentures, and deposits of ₹500 crore or more.
Then, from April 1, 2027, the coverage gets even more broader. ICAI will include firms auditing entities that have raised over ₹50 crore from the public, banks, or financial institutions during the review period. The institute is going to mandate the rule for audits of any body corporate—including trusts—that regulators categorized as public interest entities.
Disclosure of Audit Quality Maturity Model Levels on ICAI Website and Peer Review Certificates:
ICAI has also decided to make AQMM levels more visible. The list of reviewed firms will be published on its website, grouped by level, and the AQMM level will be printed on Peer Review Certificates issued to firms.
According to ICAI, this step will bring more audit firms under a structured quality framework, encouraging better practices and accountability. Industry observers believe the move will not only improve audit standards but also enhance investor confidence in financial reporting.
Also Check: ISA Assessment Test July 2025 Merit List.
