The Institute of Chartered Accountants of India (ICAI) has officially rolled out the Audit Quality Maturity Model (AQMM) 2.0, which applies to firms auditing listed entities, banks (excluding co-operative banks), and insurance companies.
This new model follows the mandatory implementation of AQMM 1.0 on April 1, 2023, which also covered these same entities, while firms focused solely on branch audits remain exempt.
Under AQMM 1.0, audit firms were assessed by peer reviewers, with their ratings made available on the ICAI website alongside their peer review certificates. AQMM 2.0 continues this requirement, ensuring that the same firms remain subject to evaluation.
Significantly, India is the only country to have introduced a dedicated self-evaluation framework for audit quality maturity. With around 96,000 audit firms in operation—most of which are sole proprietorships—this initiative aims to enhance the overall quality of audit practices in the nation.
