The Institute of Chartered Accountants of India ( ICAI ) has officially approved the Audit Quality Maturity Model ( AQMM ) version 2.0, enhancing the standards for auditing selected firms. The updated model, available at ICAI Resource, aims to strengthen the audit quality and ensure consistent standards across the industry.
The AQMM v 1.0, which became mandatory from April 1, 2023, applied to firms auditing:
However, firms exclusively performing branch audits were not covered under AQMM v 1.0. The review level assigned to firms using AQMM v 1.0 is recorded on the ICAI website, linked to the validity of the firms’ peer review certificates.
With the introduction of AQMM v 2.0, there is no change in its applicability. The new version remains mandatory for firms auditing the same categories of entities as AQMM v 1.0.
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AQMM v 2.0 is structured into three main sections:
| Section Reference | Maximum Score | % weightage |
| Section 1 “Practice Management – Assurance” | 370 | 61.67 |
| Section 2 “Human Resource Management” | 150 | 25.00 |
| Section 3 “Digital Competency“ | 80 | 13.33 |
| TOTAL | 600 | 100.00 |
To qualify for a maturity level, a firm must score at least 30% in each section. The overall maturity level is determined based on the percentage of the actual score achieved out of a maximum score of 600.
| Level | Scores Received (Greater than or equal to) | Scores Received Less than |
| Level 1 Firm | 30 % | 50 % |
| Level 2 Firm | 50 % | 70 % |
| Level 3 Firm | 70 % | 85 % |
| Level 4 Firm | 85 % | 100 % |
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AQMM v 2.0 will be applicable to firms, termed as Practice Units in the context of Peer Review, that submit Form 1 – Application cum Questionnaire on or after April 1, 2025. This will cover firms with a review period from April 1, 2022, to March 31, 2025, excluding those constituted during this period, for which the review period starts from their date of constitution.
Firms may, however, choose to adopt AQMM v 2.0 earlier if they wish to align with the updated standards ahead of the mandatory date.
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