Auditing and Assurance Standards Board
The Institute of Chartered Accountants of India
March 31, 2026
Announcement on Deferment of Effective Date of SQM 1 and SQM 2
1. The Institute of Chartered Accountants of India (ICAI) had issued the extant Standard on Quality Control (SQC) 1, “Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements”, in October 2007. The said Standard is effective for all engagements relating to accounting periods beginning on or after 1st April 2009. SQC 1 continues to remain in force and is applicable to all firms in respect of the services covered thereunder.
2. ICAI, vide its announcement dated 14th October 2024 hosted on its website, had issued the following Standards on Quality Management (SQMs):
(i) SQM 1, “Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements”; and
(ii) SQM 2, “Engagement Quality Reviews”.
These Standards were to become mandatorily effective from 1st April 2026. Upon their coming into effect, SQM 1 and SQM 2 were to replace the extant SQC 1.
3. The Council of ICAI, at its 451st Meeting held on 30th and 31st March 2026 considered the matter relating to the mandatory effective date of SQM 1 and SQM 2. The Council decided to defer the mandatory effective date of SQM 1 and SQM 2 until further announcement.
Accordingly, until such time as a further announcement is made, the extant SQC 1 shall continue to remain applicable.
4. This announcement is issued under the authority of the Council of ICAI.
