The Institute of Chartered Accountants of India (ICAI), Centre For Audit Quality Directorate has mandated evaluation of Audit Quality Maturity of Firms using revised Audit Quality Maturity Model.
A public announcement made by the Institute on Tuesday stated that “W.e.f 1st of APRIL 2023, the firms auditing the following types of entities shall be mandatorily required to undertake an evaluation of their audit quality maturity using the Audit Quality Maturity Model Revised Version 1.0 (AQMM Rev v1.0).
a) A listed entity; or (b) Bank other than co-operative bank (except multi-state co-operative banks); or (c) Insurance Company The firms conducting only branch audits have been excluded from the mandate. Review of the scores and level obtained by the firm using revised AQMM v 1.0.”
“The scores and the level arrived at shall be subject to review by a peer reviewer alongside the peer review cycle which falls anytime on or after 1st of April 2023. However, the firm(s) may choose to get their scores reviewed by an AQMM reviewer before their peer review cycle falls due. In case of firms whose last peer review cycle has been completed and not a year has lapsed from the date of the last review, such firms may choose to get their scores reviewed before their next peer revAw falls due by an AQMM reviewer. This option would be beneficial for the firms that have undergone their peer review recently and will have to wait for 3 years to have their next cycle for review of their AQMM scores,” the Institute said.
However, subsequent reviews shall necessarily be aligned to the peer review cycle and that the period of review in no case be less than a year.
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