Audit Oversight in the European Union and the Challenges for Bulgaria’s Eurozone Accession
Audit Oversight in the European Union and the Challenges for Bulgaria’s Eurozone Accession

Author(s): Diyana Bankova
Subject(s): Politics / Political Sciences, Politics, Economy, Governance, EU-Approach / EU-Accession / EU-Development, Financial Markets, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: oversight; authority; financial audit; control systems; EU integration; frauds
Summary/Abstract: This study explores the system of audit oversight in the European Union, with a particular focus on the role of the Committee of European Auditing Oversight Bodies (CEAOB) and its implications for Bulgaria. Effective audit oversight is essential for financial stability, transparency, and investor confidence — key prerequisites for the smooth functioning of capital markets and the banking sector within the Eurozone. The research analyzes the evolution and functions of the EU’s audit oversight framework, emphasizing its harmonization role across Member States. Special attention is given to Bulgaria’s national supervisory authority and its integration within the European structure. The paper discusses both the benefits and challenges Bulgaria faces in aligning with EU audit standards, including capacity building, ESG reporting, and digitalization of audit practices. In light of Bulgaria’s planned accession to the Eurozone on 1 January 2026, the paper argues that strengthening audit oversight and control systems is not only a regulatory necessity but also a strategic instrument for enhancing trust in the Bulgarian financial sector. The conclusions highlight the importance of closer cooperation between national and European institutions and provide recommendations for ensuring readiness for full participation in the Eurozone.

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