Changes affecting audit work

As usual, in addition to the Tízórai event, we will also report on the most important changes affecting audit work in a separate newsletter:

  • Increase in audit threshold: The audit threshold will increase from 300 million forints to 600 million forints in 2025, providing an opportunity for smaller businesses to reduce their administrative tasks.From 2025, only parent companies with a balance sheet total of less than HUF 10 billion, net sales of HUF 20 billion and an average number of 250 employees (two out of three in the last two years) will have to prepare consolidated financial statements.
  • The possibility to prepare simplified annual report: the scope of companies exempted from preparing a business report and cash flow has been extended and the content of the supplementary notes are limited - the thresholds are HUF 2 billion for the balance sheet total, HUF 4 billion for the annual net turnover and 50 employees (two out of three companies do not exceed these thresholds)
  • ISA600 changes: Due to changes in the ISA600 standard, expectations and communication related to group audits have increased. This means that even stricter requirements must be met during group audits.
  • Electronic archiving: From 2025, electronic archiving will become mandatory for auditors, meaning that all audit reports must be issued and signed in electronic form, and the entire documentation must be archived.
  • Sustainability and ESG reporting: The applicable EU directive, Act C of 2000 on accounting, and Act CVIII of 2023 on sustainability audit reports require significant preparation from large companies. Due to the timely compliance with the requirements and preparation for the related audit work, we will test the readiness of the obligated parties already in 2025. Based on the current legislation, public interest entities will be required to report after 2024, while in 2025 all other large companies will be required to do so if they exceed two of the thresholds - HUF 10 billion balance sheet total, HUF 20 billion net turnover, average statistical number of employees of 250. Fill in the questionnaire below to find out whether your company is subject to the obligation.
  • Updating closing schedules: We ask clients to prepare the basic closing processes to enable more efficient and accurate audits.