ICAI Expands Mandatory AQMM Applicability to More CA Firms
ICAI has expanded mandatory AQMM applicability to more CA firms, including those auditing group entities and large unlisted companies
The Institute of Chartered Accountants of India (ICAI) has expanded the scope of the mandatory Audit Quality Maturity Model (AQMM) bringing more Chartered Accountant firms under stricter audit quality standards. The announcement was issued on April 10, 2026 and modifies an earlier notification issued in August 2025. AQMM is a framework used to assess and improve the quality of audit...
The Institute of Chartered Accountants of India (ICAI) has expanded the scope of the mandatory Audit Quality Maturity Model (AQMM) bringing more Chartered Accountant firms under stricter audit quality standards. The announcement was issued on April 10, 2026 and modifies an earlier notification issued in August 2025.
AQMM is a framework used to assess and improve the quality of audit work carried out by CA firms. It is linked with the Peer Review process and helps ensure that firms follow proper audit practices.
Earlier, AQMM was mandatory only for firms auditing listed companies, banks, and insurance companies. Now, ICAI has widened the scope to cover more firms in a phased manner.
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Under the revised framework, the following firms will now come under mandatory AQMM:
- Firms auditing holding, subsidiary, associate, or joint venture entities of listed companies, banks, and insurance companies.
- Firms planning to undertake statutory audit of large unlisted public companies with:
- Paid-up capital of Rs. 500 crore or more
- Turnover of Rs. 1000 crore or more
- Loans or deposits of Rs. 500 crore or more
- Firms auditing entities that have raised more than Rs. 50 crore from public, banks, or financial institutions.
The applicability will be implemented in phases:
- From April 1, 2026 for firms auditing group entities and large unlisted companies
- From April 1, 2027 for firms auditing entities with significant public funding
ICAI has also clarified that firms conducting only branch audits will not be covered under this requirement.
The move is aimed at improving audit quality across a wider range of firms and not limiting strict standards only to firms auditing top listed entities. For CA firms, this means additional compliance and documentation requirements. Firms will need to align their audit processes with AQMM standards and prepare for Peer Review accordingly.
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