Most EU markets apply the same harmonised size criteria — balance sheet total, turnover and headcount, two of three — but the figures were raised across the Union and national implementation is not uniform. Outside the EU the criteria diverge further.
- The audit trigger in each market
- How the harmonised EU criteria apply
- Why crossing the threshold is a two-year question, not a one-year one
When does a company become subject to a mandatory audit? The table covers the 33 markets where HTLC Network publishes the figure.
| Country | Audit requirement |
|---|---|
| Albania | Statutory audit required for joint-stock companies (Sha) and large entities per National Accounting Standards thresholds — smaller Shpk entities are generally exempt |
| Austria | A statutory audit is mandatory once a GmbH exceeds 2 of 3 thresholds — €5M balance sheet, €10M turnover, 50 employees — for two consecutive years; small GmbHs without a compulsory supervisory board are exempt |
| Belgium | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Bulgaria | Medium and large enterprises are always audited; small enterprises are audited only if they exceed 2 of 3 thresholds — BGN 2,000,000 ( |
| Croatia | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Cyprus | A statutory audit is mandatory for every registered Cyprus company, including dormant ones; small companies (net turnover under €200,000, rising to €300,000 from 6 February 2026; gross assets under €500,000; for two consecutive years) may opt for a lighter ISRE 2400 (Revised) review instead of a full audit |
| Czech Republic | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Denmark | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds; many small ApS companies opt out below this |
| Estonia | A statutory audit or review applies above defined turnover/balance-sheet/headcount thresholds set in the Estonian Auditors Activities Act, broadly aligned with EU harmonized thresholds |
| France | A statutory auditor (commissaire aux comptes) is mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Greece | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Hungary | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds (a lower national exemption also applies for very small entities) |
| Ireland | Statutory audit exemption available to small companies meeting 2 of 3 thresholds in both the current and prior year (turnover ≤ €15M, balance sheet ≤ €7.5M, ≤ 50 employees) and micro companies (turnover ≤ €900K, balance sheet ≤ €450K, ≤ 10 employees) — thresholds raised 1 July 2024 |
| Israel | Annual financial statements audited by a certified Israeli CPA are required for all private and public companies filed with the Registrar of Companies and the Tax Authority — no small-company exemption threshold |
| Italy | Statutory audit (revisione legale) mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Japan | Statutory audit by a CPA or audit corporation is required for "large" KK with paid-in capital of ¥500 million or more, or liabilities of ¥20 billion or more, and for any company voluntarily establishing an accounting auditor or audit/nominating committee |
| Kosovo | Statutory audit required for large entities and public-interest entities under Kosovo's Law on Accounting, Financial Reporting and Auditing |
| Lebanon | Ministerial Decree No. 8089/1996 requires an LACPA-registered CPA to audit all SARL, SAL, holding, offshore and foreign-branch entities regardless of size, plus any sole proprietorship or partnership exceeding 25 employees or LBP 750 million turnover — a threshold now equal to roughly $8,370 at market rates |
| Lithuania | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Malta | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Netherlands | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Poland | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Portugal | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Romania | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Serbia | Statutory audit required for large and medium-sized entities and public-interest entities under Serbian accounting law |
| Singapore | Audit exemption for small companies meeting 2 of 3 thresholds over the immediate past two financial years: revenue ≤S$10M, total assets ≤S$10M, ≤50 employees |
| Slovakia | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| South Korea | External audit mandatory when a company meets 2 of 3 thresholds for two consecutive years: total assets ≥KRW 12 billion, total liabilities ≥KRW 7 billion, annual revenue ≥KRW 10 billion — the External Audit Act extends this to Yuhan Hoesa as well as Chusik Hoesa |
| Spain | Statutory audit mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds |
| Switzerland | An "ordinary" audit applies above 2 of 3 thresholds: CHF 20M balance sheet, CHF 40M turnover, 250 employees; a lighter "limited" audit applies to most SMEs, waivable below 10 employees with shareholder consent |
| Tunisia | Statutory audit (commissaire aux comptes) required for SA, SARL and SUARL meeting 2 of 3 thresholds for two consecutive years: total balance sheet TND 1.5 million, revenue TND 2 million, average 30 employees (Decree 2006-1546) |
| Turkey | Independent audit mandatory for companies exceeding 2 of 3 thresholds over the last two fiscal periods: total assets TRY 500M, net sales revenue TRY 1B (both raised in a Decision published 17 March 2026, effective for periods from 1 January 2026), 150 employees (unchanged) |
| United Kingdom | Statutory audit exemption for small companies meeting 2 of 3 thresholds in both the current and preceding year: turnover < £15M, gross assets < £7.5M, < 50 employees (thresholds effective from 6 April 2025) |
The criteria are usually cumulative in a specific way: a company becomes subject to audit when it exceeds two of the three limits, typically for two consecutive financial years. A single year above the line does not necessarily trigger the obligation — and a single year below it does not necessarily end one.
For a group, the question is often asked at the wrong level. Local statutory audit obligations attach to the local entity regardless of whether the group is audited at consolidated level.
Figures are those published on the HTLC Network country pages, reviewed September 2026. Rates and thresholds change: confirm the current position for the country concerned before relying on it.
Conclusion
Audit obligations are a predictable consequence of growth, and one of the few compliance costs that can be forecast two years ahead with reasonable confidence.