Yes, audit is compulsory in Germany for certain types of companies based on their size, legal form, and other factors. For example, large public companies, banks, and insurance companies must have their financial statements audited by a statutory auditor. Additionally, certain other entities such as partnerships and cooperatives may also be required to have their accounts audited. However, smaller businesses may be exempt from the audit requirement. The specific rules and regulations for auditing in Germany are set out in the German Commercial Code (Handelsgesetzbuch or HGB) and other relevant laws and regulations.