Publication

9 April 2021

Audit exemption thresholds in Europe Short- and long-term development in 32 European countries

Following the 2013 Accounting Directive, small European Union (EU) companies are no longer required to have a statutory audit. However, the EU legislation allows Member States to impose an audit on their small companies based on their specific circumstances.

This publication follows up on our 2016 Factsheet and presents the current audit exemption thresholds in Europe and how several countries amended them over the last few years. In addition, we present how the thresholds changed over the last 15 years.

Our survey results show that 5 European countries lowered their audit exemption thresholds while 4 countries increased them between 2016 and 2021. Overall, there was no clear upward or downward trend in the development of the thresholds in this period.

In the longer-term, however, we noted a clear increase in the thresholds in the majority of European countries. On average, countries’ thresholds for balance sheet and net turnover tripled between 2006 and 2021. More specifically, 23 countries increased the threshold for their balance sheet amount and 22 countries increased the threshold for the net turnover in this period. We also found diverging national policies and views on auditing smaller entities.

Related content

PublicationPublic audit oversight

29 June 2022

PublicationDefining a public interest entity

21 June 2022

PublicationStronger internal controls to reduce corporate risks

17 June 2022

UpdateAudit Policy

7 June 2022

PublicationNon-audit services

30 May 2022

PublicationMandatory rotation of auditors

30 May 2022

UpdateSME Update

27 May 2022

EventAudit quality: definition, drivers and indicators

18 May 2022

UpdateAudit Policy

12 May 2022

UpdateAudit Policy

13 April 2022

PublicationESG Governance

12 April 2022

Consultation responseEC’s consultation on VAT in the digital age

30 March 2022

EventIntellectual property for accountants – train the adviser

25 March 2022

UpdateSME Update

24 March 2022

PublicationHow IP can help build risk resilient SMEs

24 March 2022

UpdateAudit Policy

10 March 2022

PublicationWar in Ukraine – what European accountants need to know

9 March 2022

In the mediaAccountancy Europe & the EUIPO: working together to support and guide SMEs

1 March 2022

UpdateSME Update

25 February 2022

PublicationVAT rates – greater flexibility for Member States

14 February 2022

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?