Audit requirements in Europe

A comparative overview

Absztrakt

Statutory audit is essential for ensuring transparency and reliability  in ensuring the transparency and reliability of financial reporting. In Hungary, the Accounting Act defines the mandatory cases of audit, primarily based on sales revenue and number of employees. In recent years, however, these thresholds have been significantly increased  have recently been increased, significantly reshaping the audit landscape. This paper aims to provide a comprehensive overview of the statutory audit requirements in Hungary, by placing the Hungarian case in a broader European context. Given the diversity of national audit regimes within the EU, the paper explores how recent threshold changes align with or diverge from trends observed across Member States. Special attention is paid to the underlying motivations of the EU and individual countries to adjust audit obligations. The goal is to assess the potential implications of higher thresholds on audit quality, financial transparency, and the role of auditors in corporate governance.