The Institute of Chartered Accountants of India (ICAI) has announced the release of the Exposure Draft for Audit Quality Maturity Model (AQMM) version 2.0. Designed as a comprehensive evaluation tool, AQMM helps audit firms assess their maturity levels and identify areas for improvement. This article delves into the significance of AQMM v2.0 and its implications for audit practices.
AQMM v1.0, introduced earlier, mandated assessment for listed entities, banks (excluding co-operative banks), and insurance companies, excluding branch audits. Peer review under AQMM v1.0 certified firms based on their audit maturity levels, prominently displayed on ICAI’s website.
Version 2.0 proposes significant enhancements. It aims to refine the existing model based on industry feedback and evolving audit standards. The exposure draft outlines these changes and invites public comments to ensure a robust framework.
Key features of AQMM v2.0 include:
- Expanded scope to cover broader sectors or specific audit types.
- Enhanced evaluation criteria to reflect current regulatory requirements.
- Improved peer review processes to maintain transparency and credibility.
The release includes a detailed presentation highlighting proposed revisions and a comparative analysis between AQMM v1.0 and v2.0, facilitating stakeholders’ understanding of the updates.
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Centre for Audit Quality Directorate
The Institute of Chartered Accountants of India
12th July, 2024
Exposure Draft – Audit Quality Maturity Model (AQMM) version 2.0 – for Public Comments
The Audit Quality Maturity Model (AQMM v 1.0) is a cross-functional evaluation model developed with an objective to enable the Audit firms to evaluate their current level of Audit Maturity and also identify areas where competencies need to be strengthened.
The AQMM v 1.0 is mandatory w. e. f. April 1, 2023 to the firms auditing the following entities:
a) a Listed Entity
b) Banks other than Co-Operative banks (Except multi- state Co-operative banks)
c) Insurance Companies
However, the firms conducting only branch audits are not covered.
The level of the firm obtained using AQMM v 1.0 is being reviewed by a peer reviewer and recorded on the website of ICAI against the validity of the firms’ peer review certificate.
The Centre for Audit Quality proposes to bring out version 2.0 of the Audit Quality Maturity Model. The same was considered by the Council at its 432nd meeting and as decided, the same is being issued for public comments. The Exposure Draft and the related files can be accessed at the following links:
1. AQMM v 2.0 https://rb.gy/4gpnvs
2. Presentation summarizing the proposed changes https://rb.gy/qksppp
3. Comparison of AQMM v 1.0 and AQMM v 2.0 https://rb.gy/l23c0o
The comments on the above mentioned Exposure Draft may be sent at the following link https://forms.gle/4iWG8oHzgBERRTPi8 latest by 2nd August, 2024.
