I. ICAI ANNOUNCEMENT
1. AUDIT QUALITY MATURITY MODEL (AQMM)
The ICAI has issued a clarification expanding the scope of mandatory AQMM applicability. The revised framework now explicitly includes Practice Units auditing holding/subsidiary/associate/JV entities of specified categories (listed entities, banks, insurance companies), provided such firms are subject to Peer Review.
AQMM was already mandatory for firms auditing:
- Listed entities
- Banks (excluding co-operative banks except multi-state co-operative banks)
- Insurance companies (the firms conducting only branch audits are not to be covered)
Expanded Scope – AQMM v2.0 (Phased Implementation)
The applicability has now been significantly widened as under:
(A) From 1 April 2026
Applicable to:
• Firms subject to Peer Review auditing:
• Holding/Subsidiary/Associate/JV of:
• Listed entities
• Banks (excluding co-op banks except multi-state)
• Insurance companies
• Firms undertaking statutory audit of large unlisted public companies meeting any of the following thresholds:
- Paid-up capital ≥ ₹500 crore, or
- Turnover ≥ ₹1,000 crore, or
- Aggregate borrowings ≥ ₹500 crore
(B) Fr
