When Is a Statutory Audit Mandatory in Hungary? An Auditor Answers

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Every year, thousands of Hungarian company owners ask the same question at closing time: does our company need an auditor this year? The answer sits in Section 155 of the Hungarian Accounting Act (Act C of 2000), but the rules have changed recently enough that older advice found online is now wrong. Below, we compile the most common questions and answer them based on the text of the Accounting Act and the published service materials of the Centrum Audit group in Sopron, where Auditor Consulting Kft. operates under the leadership of Iván Attila, named on the firm’s website as a certified auditor (okleveles könyvvizsgáló) and forensic tax and audit expert. The answers are paraphrased explanations drawn from those public sources, not statements from a personal interview. The consolidated text of the Act is on the official legislation portal njt.hu — verify the figures there before any decision, because thresholds are amended from time to time.

Which companies are subject to audit as a rule?

The starting point is broad: every business that keeps double-entry books falls under the audit obligation in principle. The Act then grants an exemption below certain size thresholds, and it is that exemption that most small and medium-sized companies need to evaluate.

What are the current thresholds?

For business years starting on or after 1 January 2025, a company is exempt from the audit obligation if both of the following conditions are met: its average annual net revenue over the two business years preceding the year in question does not exceed 600 million forints, and its average number of employees over the same two years does not exceed 50. Both conditions must hold together; exceeding either one is enough to trigger the obligation.

Two practical details catch owners out. First, the test uses the two-year average, so a single strong year does not automatically create an obligation. Second, the raised threshold applies only to business years beginning in 2025 or later — audits of 2024 financial statements were still assessed under the previous 300-million-forint revenue limit. Companies that no longer meet the obligation after the increase may decide to end an existing audit engagement, though the law requires notifying the public audit oversight authority of the termination and its reason.

Are there companies that can never be exempt?

Yes. Regardless of size, the audit obligation remains for categories the law considers higher-risk or publicly significant. These include, among others, savings cooperatives, companies included in consolidated financial statements, Hungarian branches of foreign-headquartered enterprises (subject to certain exceptions under Section 154/A), public-interest entities, and businesses that depart from the Act’s provisions in exceptional cases to present a true and fair view. Nonprofit organisations follow their own revenue-based rule. Because the list is technical, borderline cases deserve a direct look at the current text of the Act rather than a rule of thumb.

How is the obligation assessed for a newly founded company?

New companies do not have two preceding years, so the Act requires annualising the figures of a short first period. Founders planning rapid growth should run this calculation early — discovering an audit obligation after the year-end close is an expensive surprise.

Who is allowed to perform the audit?

Only auditors registered with the Hungarian Chamber of Auditors (MKVK) may accept a statutory engagement. Registration can be checked in the Chamber’s public register, and it is a sensible first verification step for any company appointing an auditor. Within the Centrum Audit group, audit work is handled by Auditor Consulting Kft.; according to the company’s published information, Iván Attila holds the certified-auditor qualification and also works as a forensic tax and audit expert, and the group supports its services with full liability insurance — a commitment the firm states explicitly on its website.

How is an auditor appointed, and by when?

The company’s supreme body — the members’ meeting or general assembly — elects the auditor, and the law allows 90 days from the appointment decision to conclude the audit contract. In practice, auditors advise against waiting until spring: fieldwork scheduled early is smoother for both sides, and late appointments compress the same work into the busiest weeks of the season.

What happens if a mandatory audit is skipped?

A company that files its annual report without the required auditor’s report is in breach of its publication obligations. The Chamber of Auditors has actively written to companies that deposited reports without an audit opinion, and company-registry procedures can follow a persistent default. Beyond the legal exposure, an unaudited report can complicate bank financing, grant applications and dividend decisions. It is far cheaper to clarify the obligation in January than to repair the filing in June.

Where can owners get a definitive answer for their own company?

The thresholds above describe the general rule as amended with effect from the 2025 business year; they do not replace advice on a specific company’s situation, and the figures should always be re-checked against the current text of the Accounting Act on njt.hu. For companies in western Hungary and beyond, the Centrum Audit group in Sopron — which serves clients nationwide through online collaboration, including foreign-owned companies — offers audit-readiness assessments through Auditor Consulting Kft. alongside its accounting, payroll and tax advisory services. A short consultation before the year-end usually settles the question in a single meeting.

Useful references for this topic: Centrumaudit website, Service details, Authority guidance, Industry context, Further official reference.