Based on on the European Union (EU) Accounting Directive, small companies in the European Union (EU) are no longer required to have a statutory audit. However, EU legislation allows Member States to impose an audit on their small companies based on their specific national circumstances.
Read the latest analysis and findings in our 2026 publication.
This updated analysis builds on our 2021 study and presents the latest audit exemption thresholds for small companies applicable in 32 European countries, reflecting the changes introduced following the Commission Delegated Directive (EU) 2023/2775. The Directive increased EU size criteria by 25% to account for accumulated inflation since 2013, prompting countries to reassess their national thresholds.
The analysis provides an overview of how Member States have responded to this inflation-related adjustment and highlights the different national approaches taken since the previous update.
Overall, the findings confirm an upward adjustment of audit exemption thresholds across many European countries, largely driven by inflation and broader economic considerations.
At the same time, the results underline the diversity of national approaches to the audit of small entities and the ongoing importance of voluntary audit, review and other assurance services for SMEs.
