The Institute of Chartered Accountants of India (ICAI) has announced a significant expansion in the mandatory applicability of its Audit Quality Maturity Model (AQMM) version 2.0, aimed at enhancing audit standards across a wider spectrum of firms. The move will be implemented in a phased manner starting April 1, 2026.
Currently, AQMM is mandatory for firms auditing listed entities, banks (excluding co-operative banks except multi-state co-operative banks), and insurance companies-excluding firms conducting only branch audits. Under the revised framework, the following additional categories will now fall within its ambit:
From April 1, 2026 - Firms auditing holding companies, subsidiaries, associates, or joint ventures of listed entities, specified banks, and insurance companies. Also included are firms undertaking statutory audits of unlisted public companies with either:
- Paid-up capital of ₹500 crore or more,
- Annual turnover of ₹1,000 crore or more, or
- Aggregate outstanding loans, debentures, and deposits of ₹500 crore or more as of the preceding March 31.
From April 1, 2027 - Firms undertaking statutory audits of entities that have raised over ₹50 crore from the public, banks, or financial institutions during the review period, as well as public interest entities, including certain trusts.
Additionally, ICAI will now publicly disclose AQMM levels of firms on its website, arranged level-wise, alongside the validity date of their Peer Review Certificate. The AQMM level will also be printed directly on Peer Review Certificates issued to firms.
The expansion underscores ICAI's commitment to improving audit quality, transparency, and public trust in the profession by ensuring higher accountability and governance standards among statutory auditors.
Official copy of the notification has been attached
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