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Audit Quality Maturity Model (AQMM)

News: In order to improve audit quality and transparency, the Institute of Chartered Accountants of India (ICAI) recently introduced the Audit Quality Maturity Model (AQMM).

The Audit Quality Maturity Model (AQMM) is a tool for audit firms and single proprietors to evaluate their own progress towards technologically driven operational efficiency methods.

A carefully developed group of Audit Quality Indicators (AQIs) make up the AQMM.

It covers business operations like revenue planning and pricing, audit practise manual, engagement budgeting, timesheet, technology adoption, engagement quality control, human resource management including resource planning and monitoring, performance evaluation and compensation, physical and IT infrastructure, and business operations.

The Practise Management (Operation) portion of the AQMM model, Practise Management (Strategic/Functional), and Human Resource Management sections each have a total score of 600 points.

The firm will determine a level between Levels 1 and 4 based on the score(s) received under each of the parts.

While Level 1 shows how young the company is, Level 4 shows how much progress the company has achieved in adopting standards and procedures.

India’s Institute of Chartered Accountants (ICAI)

It is a statutory organisation created by the Chartered Accountants Act of 1949, a piece of legislation passed by Parliament.

The country’s Chartered Accountancy profession must be regulated, accounting standards must be developed, and standard auditing procedures must be prescribed.

The Ministry of Corporate Affairs, part of the Indian government, has administrative jurisdiction over it.