Regulatory updates

EDs/Consultation papers –India and International

Updates from ICAI

Back

The Audit Quality Maturity Model version 1.0 (AQMM v1) is a cross-functional evaluation model developed with an objective to enable the audit firms to evaluate their current level of audit maturity and also identify areas where competencies need to be strengthened. AQMM v1 was mandatory from 1 April 2023 for firms, auditing the following entities:

  • Listed entity
  • Banks other than co-operative banks (except multi- state co-operative banks)
  • Insurance companies

Firms conducting branch audits were not covered

On 12 July 2023, the Centre for Audit Quality has proposed to bring out version 2 of the AQMM. The key changes in AQMM v2 are:

  • A separate section to evaluate the digital competency of firms is proposed to be introduced.
  • Section 3 of AQMM v1 (Practice management- strategic/functional) is proposed to be merged with section 1 of AQMM v1 (practice management- operation)
  • Some new clauses have been introduced while some old clauses which were objectively difficult to quantify have been dropped.

Proposed effective date: AQMM v2 may be made applicable to practice units which submit form 1 on or after 1 April 2025.

The comment period on the above exposure draft ended on 2 August 2024

To access the text of the consultation paper please click here

Subsequently, on 22 August 2024, ICAI issued the final version of AQMM version 2.0. To ensure a smooth transition from AQMM v1.0, AQMM v2.0 will be applicable to firms (referred to as Practice Units) which submit Form 1 on or after 1 April 2025. This will cover firms for which the review period is from 1 April 2022 till 31 March 202 (other than firms which have been constituted during this period for which the review period shall commence from the date of constitution till 31 March 2025). Click here to access the final version of AQMM v2.0.

Our Insights

Tools and Enablers
Resources
Events and Webinars
Sectoral Insights

Reach out to us

;