Determining whether an audit is required often causes confusion, especially when this question arises for the first time in an organization. To help, we’ve compiled a comprehensive guide on the current rules and the significant threshold increase effective in 2025.
Audit Obligation for Businesses Using Double-Entry Bookkeeping
According to Section 155 of the Accounting Act, an audit is generally required, but exemptions apply below certain thresholds.
Conditions for Exemption (New Rules Effective from 2025)
A business is exempt from the audit obligation if both of the following conditions are met:
- Revenue: The average net revenue for the previous two financial years does not exceed HUF 600 million. (This threshold increased from HUF 300 million to HUF 600 million as of January 1, 2025.)
- Headcount: The average number of employees over the previous two years does not exceed 50 persons.
Important: The new rule applies first to financial years starting in 2025. For financial years that began in late 2024, the HUF 300 million threshold still applies!
Who Can NEVER Be Exempt from Audit?
Certain entities are always required to have an audit, regardless of thresholds:
- Those for whom the law explicitly requires it;
- Savings cooperatives;
- Companies included in consolidation;
- Hungarian branches of foreign companies (except certain exempt cases);
- Entities deviating from statutory requirements to ensure a true and fair view;
- Public-interest entities.
Other Organizations (Foundations, Associations)
Since 2020, the scope has expanded. These organizations must undergo an audit if their annualized revenue over the previous two years exceeds HUF 600 million OR their headcount exceeds 50 persons.
Practical Examples for Determining Audit Obligation
Example 1: Obligation in 2025
| 2023 revenue: HUF 500M | Headcount: 10 |
| 2024 revenue: HUF 750M | Headcount: 15 |
| Average: HUF 625M | Average headcount: 12,5 |
Result: REQUIRED (average revenue > HUF 600M).
Example 2: Obligation in 2026
| 2024 revenue: HUF 400M | Headcount: 10 |
| 2025 revenue: HUF 600M | Headcount: 15 |
| Average: HUF 500M | Average headcount: 12,5 |
Result: NOT REQUIRED (500M Ft < 600M Ft).
Special Cases and FAQs
What if revenue is exactly HUF 600 million?
The law states an audit is required if the amount exceeds the threshold. If it is exactly HUF 600 million, it is not mandatory.
Foreign currency bookkeeping and newly established companies
- Foreign currency: Convert data to HUF using the official MNB exchange rate on the relevant date.
- New company: Annualize partial-year data! (Example: If the company earns HUF 300M in 4 months → 300/4*12 = HUF 900M annualized revenue.)
Appointing an Auditor and Process
The auditor is appointed by the supreme body (general meeting). The resolution must include contract terms and fees. The contract must be signed within 90 days of appointment.
Warning: If the auditor receives a “non-compliant” rating during public oversight, the audit must be repeated within 90 days!
Need help with your audit?
Choose a reliable partner! Our auditors:
Miszori Ildikó and Killik László Vilmos
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