ICAI Issues New Quality Management Standards: SQM 1 and SQM 2 for Auditing and Assurance

The Institute of Chartered Accountants of India (ICAI) has issued new Quality Management Standards, SQM 1 and SQM 2, for auditing and assurance. SQM 1 focuses on quality management for firms performing audits or reviews of financial statements, while SQM 2 deals with engagement quality reviews. These standards aim to enhance the quality and consistency of audit engagements. The effective dates are specified within the standards, and they include conforming amendments to other standards. The existing standard, SQC 1, will remain applicable until the new standards take effect. These changes reflect ICAI’s commitment to improving audit quality and aligning with international standards.