A growing number of Polish companies are expanding into the Czech market by establishing subsidiaries, branches, or representative offices. As these operations grow, many CFOs and finance teams start to ask whether their Czech entity is subject to statutory audit requirements in the Czech Republic and how Czech accounting regulations differ from Polish rules.
In many cases, Czech entities are part of Polish capital groups, which means that local statutory audit requirements may also affect group reporting and consolidation in Poland.
When is a financial statement subject to mandatory audit in the Czech Republic?
Similarly to Poland, the audit obligation in the Czech Republic depends primarily on the size of the entity and meeting certain financial thresholds.
For financial statements for 2025 and before a company had to have them audited by a statutory auditor if they met at least two of the three following criteria in two consecutive financial years:
- total assets exceed CZK 40 million,
- annual net revenues exceed CZK 80 million,
- the average employment is more than 50 employees.
From 1 January 2026, the rules however have changed and only medium-sized and large companies are subject to mandatory statutory audit.
