Audit
As an audit firm on the register of the Chamber of Hungarian Auditors, we audit annual and consolidated financial statements and carry out due diligence and auditor certifications.
Overview
Transparent figures, a well-founded audit opinion
The purpose of an audit is to ensure that the financial statements give a true and fair view of the company’s assets, financial position and results — whether the audit is required by law or requested by the owner or the financing bank.
Our colleagues have broad audit experience, and we perform engagements under a documented methodology supported by modern audit software. This way the audit focuses on the genuinely risky areas and does not overburden the client’s finance team.
The work is carried out under the personal responsibility of a chamber-registered statutory auditor, and our firm holds professional indemnity insurance with ALLIANZ Hungária Zrt. All data learned during the audit is protected by a duty of confidentiality.
What we do
Our audit and due diligence services
Our firm is on the register of the Chamber of Hungarian Auditors under number 004286; our managing director, Gábor Ernst, is a chamber-registered statutory auditor (registration number: 007364) holding financial institution, investment firm, insurance, pension fund, issuer, IFRS, public sector and sustainability qualifications. These qualifications are what allow us to audit the financial statements of regulated market participants as well.
We always tailor the scope of the engagement to the size and activities of the company and to the purpose of the audit.
- Audit of financial statements. Audit of annual, simplified annual and consolidated annual financial statements.
- Valuation of contributions in kind. Auditor’s verification of the value of non-cash contributions.
- Transformation. Audit of the transformation balance sheet and inventory of assets.
- Certification of grants. Auditor’s certification of the use and accounting of national and European Union grants.
- Transaction review. Audit and accounting due diligence in connection with company acquisitions.
- Full due diligence. Comprehensive accounting and financial due diligence of companies.
- Review of financial statements. Independent review of reports, statements and forecasts.
- Review of specific areas. Targeted testing of individual items — receivables, impairment calculations or tax computations, for example.
Our clients
Who do we audit?
From business years beginning in 2025, a company keeping double-entry books is exempt from the statutory audit if, on the average of the previous two business years, its net sales did not exceed HUF 600 million and its average headcount did not exceed 50. In several cases, however, an audit is mandatory regardless of size — for example for companies included in consolidation, public-interest entities, or companies subject to audit under separate legislation.
- Financial enterprises and supervised institutions. As an auditor holding financial institution, investment firm and pension fund qualifications, we also know the reporting and data supply requirements of the supervised sector.
- Insurers and insurance intermediaries. With the insurance qualification we also review the background to technical provisions, provisioning methods and the solvency capital calculation.
- Corporate groups and companies included in consolidation. Audit of the consolidated annual financial statements, including testing of intra-group settlements and group-level reconciliations.
- Medium-sized and large companies. Statutory audit of the annual and simplified annual financial statements of double-entry bookkeeping companies above the threshold.
- Public sector bodies and state-owned companies. With the public sector qualification: audit of the financial statements of state- and municipality-owned companies, public sector bodies and organisations performing public duties, with knowledge of the specifics of public finance accounting.
- Grant-funded organisations. Auditor’s certification of the use and accounting of national and European Union grants, with project-level testing.
- Foundations and associations. Where annualised income exceeds HUF 600 million or the average headcount exceeds 50, or where the grantor requests an audit.
- Companies requesting a voluntary audit. Where an independent opinion is required not by law but by the owner, the bank, a grant authority or a planned transaction.
- Branch offices and foreign-owned companies. Audit of the Hungarian branch of a company with a foreign registered office and of the Hungarian subsidiary of a foreign parent, in cooperation with the group auditor.
Audit and internal audit are two different services. An audit gives the readers of the financial statements an independent opinion on whether those statements give a true and fair view; internal audit is a tool of management for reviewing processes and controls. Where the same client wants both, we assess them under the independence and conflict-of-interest rules: at the start of the engagement we examine which further services may be undertaken alongside the audit, and we tell you clearly.
Frequently asked questions
Audit — what is worth knowing
When is an audit mandatory?
For companies keeping double-entry books, the audit is prescribed by the Accounting Act, but smaller companies may be exempt. For business years beginning on or after 1 January 2025, exemption requires the two-year average of annual net sales to be below HUF 600 million and the average number of employees below 50. In certain cases — on legal succession or under separate legislation, for example — the obligation applies regardless of size, so it is worth discussing the specific situation.
Is an audit worthwhile even when it is not mandatory?
Yes. A voluntary audit gives the financial statements credibility with owners, banks, grant managers and business partners, and errors and risks identified during the audit can be corrected in time. Often it is the financier or the prospective buyer who asks for audited financial statements.
How does an audit engagement run?
We first learn about the company’s activities, size and accounting system, and then give a written quote. After that we prepare a risk-based audit plan, typically splitting the work into an interim phase and a phase after the balance sheet date, and finally we hand over the auditor’s report and our observations for management.
How long does an audit take?
Once the engagement is accepted, we align the timetable with the deadline for the financial statements. At a medium-sized company the interim work and the post-balance-sheet-date close together typically take a few weeks, and the on-site work only a fraction of that. The earlier we are brought in, the more predictable the process and the less is left to the last minute.
What does the audit fee depend on?
The fee depends on the size of the company, the complexity of its activities, the number of subsidiaries and foreign currency transactions, and how well the books are kept. After a short preliminary discussion and a few basic figures we give an itemised written quote, setting out the scope and the timetable of the audit as well.
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