Chamber of Hungarian Auditors

The quality assurance (QA) review system in Hungary is established in law and operates under a shared arrangement in which the Auditors’ Public Oversight Authority (APOA) is responsible for public interest entity auditors and the Hungarian Chamber of Auditors (MKVK) is responsible for non-public interest entity auditors. Within this framework, MKVK continues to support implementation and operation of the jurisdiction’s QA system through its Quality Control Committee, which publishes annual quality assurance plans, methodological materials, guidance for auditors selected for review, and annual reporting on the chamber’s review activities.

Since the previous assessment, MKVK has undertaken significant work to support the transition from quality control to quality management. MKVK translated International Standard on Quality Management 1, International Standard on Quality Management 2, and International Standard on Auditing 220 (Revised), with an implementation date of January 1, 2024, and reported that on-site inspections of systems of quality management would begin in 2025. MKVK also established a dedicated quality management knowledge base that includes the Hungarian texts of the standards, a 2024 quality management manual, implementation guidance on ISQM 1, and practical checklists to support firms in designing and operating their systems of quality management.

MKVK has also continued to support members through education and implementation activities. Quality management standards were incorporated into mandatory continuing professional development programming, and chamber training materials in 2024 and 2025 included sessions on inspection findings, quality management implementation, and practical recommendations for auditors. In addition, MKVK updated its inspection methodology in 2025 by publishing draft quality management inspection questionnaires and revising the methodological handbook, subject to chamber approval and public oversight approval.

These activities indicate that MKVK continues to play an active and sustained role in supporting the operation and enhancement of the jurisdiction’s QA framework and in helping members implement new quality management requirements. Accordingly, SMO 1 fulfillment is assessed as Sustain.

Current Status: Sustain

Initial and continuing professional development requirements for statutory auditors in Hungary are established in law and implemented by the Hungarian Chamber of Auditors (MKVK) through its qualification, examination, and continuing professional development framework. MKVK continues to play a central role in delivering and overseeing professional education for statutory auditors through its Education Committee, the Committee for the Qualification of Chartered Certified Statutory Auditors, and its training infrastructure.

Since the previous assessment, MKVK has continued to maintain and operationalize a structured continuing professional development system requiring 120 hours over a rolling three-year period. Recent chamber guidance confirms annual credit requirements for 2024 and 2025, while MKVK continues to provide mandatory training, e-learning, downloadable course materials, and approved training channels to support members’ compliance. MKVK also operates its own education center and publishes annual training content and technical learning materials through its continuing professional development platform.

MKVK also continues to support implementation of the International Education Standards (IES) through its qualification and examination system. The professional education pathway remains structured, time-bound, and subject to committee oversight, while education and examination arrangements continue to assess competencies and learning outcomes in line with IES requirements. The annual continuing professional development program remains subject to approval by the Auditors’ Public Oversight Authority.

These activities indicate that MKVK continues to actively support the implementation and ongoing development of the jurisdiction’s education and continuing professional development framework for statutory auditors. Accordingly, SMO 2 fulfillment is assessed as Sustain.

Current Status: Sustain

Auditing standards in Hungary are established under Act LXXV of 2007 on the Chamber of Hungarian Auditors, the Activities of Auditors, and on the Public Oversight of Auditors, and are translated and issued for application by the Hungarian Chamber of Auditors (MKVK) as the Hungarian National Auditing Standards. MKVK continues to play the central operational role in supporting implementation through translation, issuance of standards, technical guidance, and training for members.

Since the previous assessment, MKVK has supported implementation of the new quality management and auditing standards by translating and issuing International Standard on Quality Management (ISQM) 1, ISQM 2, International Standard on Auditing 220 (Revised), and International Standard on Auditing 600 (Revised), with application in Hungary from January 1, 2024. MKVK has also published the Hungarian translation of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (LCE) and incorporated ISA for LCE into its 2024 and 2025 mandatory training materials.

MKVK continues to provide implementation support through its standards and knowledge pages, practical materials, downloadable guidance, and the chamber’s professional journal Könyvvizsgálók Lapja. Its continuing professional development program for 2025 includes dedicated training on proportional application of ISA and use of ISA for LCE, demonstrating continued practical support to members as standards evolve.

However, despite these sustained activities, Hungary continues to apply an earlier translated ISA package and remains behind the most current International Standards on Auditing in effect at the time of assessment. This time lag affects the extent to which MKVK is fully meeting SMO 3 on an ongoing basis, even though the chamber remains active and constructive in supporting implementation. Accordingly, SMO 3 fulfillment is assessed as Review & Improve.

MKVK should continue accelerating the translation and effective implementation of the most recent ISA and related pronouncements so that jurisdiction-level requirements remain current and fully aligned with SMO 3.

Current Status: Review & Improve

Ethical requirements for statutory auditors in Hungary are established under Act LXXV of 2007 on the Chamber of Hungarian Auditors, the Activities of Auditors, and on the Public Oversight of Auditors, which authorizes the Hungarian Chamber of Auditors (MKVK) to adopt and enforce rules of professional ethics, subject to oversight by the Auditors’ Public Oversight Authority. MKVK continues to be responsible for translating, issuing, and supporting implementation of the International Code of Ethics for Professional Accountants (including International Independence Standards) within the jurisdiction.

Since the previous assessment, MKVK has translated and implemented the 2022 edition of the Code, which became effective in Hungary on January 1, 2024. MKVK has also continued translating subsequent revisions, including the technology-related revisions, with implementation expected from 2025. MKVK maintains a dedicated ethics section on its website with access to the applicable Code, supporting materials, and updates for members.

MKVK continues to support implementation through its continuing professional development program, incorporating updates to ethical requirements into training courses, guidance materials, and technical communications. Ethical requirements are reinforced through ongoing education activities and integration with the broader regulatory and disciplinary framework.

However, despite these activities, Hungary is not yet applying the most recent version of the Code in effect at the time of the assessment. This time lag affects the extent to which MKVK fully meets the ongoing requirements of SMO 4, although the chamber continues to actively support implementation and alignment. Accordingly, SMO 4 fulfillment is assessed as Review & Improve.

MKVK should continue to accelerate the translation and effective implementation of the most recent revisions to the Code to ensure that ethical requirements remain fully up to date and aligned with SMO 4.

Current Status: Review & Improve

Public sector accounting requirements in Hungary are established by the Ministry of Finance under national legislation, including reforms introduced through Government Decree 4/2013 and related regulations. The framework is based on national standards applied on a partial-accrual basis, and International Public Sector Accounting Standards (IPSAS) have not been adopted in the jurisdiction.

The Hungarian Chamber of Auditors (MKVK) does not have legal authority to adopt public sector accounting standards; however, it continues to play an advocacy and support role in relation to IPSAS. MKVK reports that it promotes awareness of IPSAS and international developments through professional events, conferences, and continuing professional development activities. The chamber also disseminates information on IPSAS developments and maintains dialogue with relevant authorities regarding potential future reforms.

Since the previous assessment, no significant regulatory developments have been identified indicating a transition toward IPSAS adoption at the jurisdiction level. MKVK continues to support knowledge-sharing and capacity-building activities but remains limited to an indirect role given the government’s responsibility for standard setting in the public sector.

These activities indicate that MKVK continues to fulfill its best-endeavor responsibilities under SMO 5 by promoting IPSAS and supporting stakeholder awareness, despite the absence of jurisdiction-level adoption. Accordingly, SMO 5 fulfillment is assessed as Sustain.

Current Status: Sustain

The investigative and disciplinary (I&D) system for statutory auditors in Hungary is established in law and operates under a shared framework in which the Auditors’ Public Oversight Authority (APOA) is responsible for public interest entity cases and the Hungarian Chamber of Auditors (MKVK) is responsible for non-public interest entity auditors and audit firms, subject to APOA oversight.

Since the previous assessment, MKVK has continued to operate and refresh its disciplinary structure. MKVK’s Disciplinary Committee was reconstituted following the December 2025 chamber elections and held its constitutive meeting in January 2026. MKVK also continues to publish disciplinary positions, committee communications, and ethics-related interpretations on its website, including 2025 disciplinary statements and targeted notices to members on areas such as status compliance and independence issues. These activities support awareness of members’ responsibilities and help reinforce preventive compliance.

MKVK’s framework continues to provide implementation support through its internal disciplinary mechanisms, including a standing Disciplinary Committee and published guidance for members. Regulatory responsibilities assigned to MKVK under law continue to include hearing disciplinary cases involving registered statutory auditors and audit firms, monitoring conduct, and taking action where unlawful activity or breaches of chamber rules are identified.

These developments indicate that MKVK continues to operate an active and sustained enforcement framework for the segment of the profession within its remit and to support jurisdiction-level alignment with SMO 6. Accordingly, SMO 6 fulfillment is assessed as Sustain.

Current Status: Sustain

Financial reporting requirements in Hungary are established under Act C of 2000 on Accounting and the European Union framework applicable to member states. International Financial Reporting Standards (IFRS) as adopted by the European Union are required at the jurisdiction level for the consolidated financial statements of domestic companies whose securities trade on a regulated market, while broader use is permitted for certain other entities under national law. Within this framework, the Hungarian Chamber of Auditors (MKVK) does not have legal authority to adopt IFRS, but it continues to support implementation and application by members.

Since the previous assessment, no significant jurisdiction-level change has been identified that alters Hungary’s overall IFRS framework. MKVK continues to support members through technical communications, continuing professional development activities, and professional publications. The chamber’s monthly professional journal, Könyvvizsgálók Lapja, continues to include international developments, standard changes, and technical updates relevant to auditors, while MKVK also maintains consultation services and technical expert support for members.

MKVK’s role remains focused on awareness-raising, implementation support, and cooperation with relevant authorities on practical application issues rather than jurisdiction-level standard setting. These activities indicate continued and sustained support for the use and implementation of IFRS within the chamber’s remit. Accordingly, SMO 7 fulfillment is assessed as Sustain.

Current Status: Sustain