ICAI Mandates AQMM 2.0 for Peer-Reviewed Firms
- Blog|News|Account & Audit|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 14 April, 2026
Latest from Taxmann
1. Introduction
On April 10, 2026, a clarification is issued regarding the mandatory applicability of the Audit Quality Maturity Model (AQMM) version 2.0 for practice units subject to peer review.
This update clarifies that firms auditing holding companies, subsidiaries, associates, or joint ventures of listed entities, insurance companies, and banks, specifically those other than co-operative banks, except for multi-state co-operative banks, are now included in the mandatory scope. It is important to note that the model currently applies to firms auditing these types of entities, but firms engaged exclusively in branch audits remain exempt from these requirements.
2. Implementation Details for April 2026
Starting April 1, 2026, the mandatory review applies to firms auditing the specific group entities mentioned above, as well as firms proposing to undertake statutory audits for large unlisted public companies. For these unlisted public companies, the requirement is triggered if they meet certain financial thresholds as of March 31 of the immediately preceding financial year. These thresholds include having a paid-up capital of at least 500 crore rupees, an annual turnover of at least 1000 crore rupees, or possessing aggregate outstanding loans, debentures, and deposits of at least 500 crore rupees.
3. Future Expansion and Public Interest Entities
The scope of the AQMM v. 2.0 will widen further beginning April 1, 2027, to encompass firms proposing to audit entities that have raised more than 50 crore rupees from the public, banks, or financial institutions during the period under review. Additionally, this phase of the mandate will include firms auditing any body corporate, including trusts, that are classified as public interest entities.
This phased implementation ensures that practice units involved with significant public interest and high-value entities are progressively brought under the quality maturity framework.
Click Here to Access the Announcement
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
