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.
