W.E.F. the 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 review 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.
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.
Note- AQMM Reviewer is a member of the Institute of Chartered Accountants of India and empaneled as a peer reviewer. He is appointed by the Peer Review Board for conducting an AQMM review any time before the peer review cycle of the firm falls due.
Hosting of the level obtained using AQMM on www.icai.org
The level of the firm arrived at, after being reviewed by the peer reviewer shall be hosted on the website of the ICAI alongside the details of the peer review certificate.
The complete text of AQMM Rev v1.0 is available at: https://resource.cdn.icai.org/71488caq57512.pdf
The members are advised to go through the implementation guide on AQMM v1.0 for a clear understanding of the various sections of the AQMM Rev v1.0. It is available at the following link:
For the Implementation guide: https://resource.cdn.icai.org/71489caq57513.pdf
For any further information/clarification/assistance in the matter you may get in touch with the Centre for Audit Quality Directorate:
Mail: caq@icai.in
Ph: 011-30110509
To read the full Article by ICAI CLICK ME.
