The Financial Supervisory Authority of Norway has imposed an administrative fine of NOK 1.2 million on Stiansen & Co AS for serious breaches of the Auditors Act. The inspection identified pervasive deficiencies in audit evidence, professional skepticism and follow-up of indications of legal violations at audited companies. Internal quality controls and corrective measures following an earlier inspection had failed to address the weaknesses.
The deficiencies included reliance on management statements without sufficient verification when auditing estimates, related-party transactions and going concern assumptions. In one engagement, the 2022 and 2023 audits lacked risk assessments and audit evidence to such an extent that they were effectively not performed. Three engagements that had passed the firm’s internal reviews contained serious violations that those controls should have detected. Weaknesses identified during the 2025 inspection also persisted, including inadequate work on deferred tax assets and related-party transactions.
The firm has outlined measures already implemented or planned, including training, annual external engagement reviews and improvements to audit tools and procedures. It must assess whether these measures are effective and take further corrective action where necessary. Evaluation results must be submitted as soon as available and no later than September 15, 2027, together with detailed results of cyclical engagement reviews for 2025 and 2026 and information on any additional corrective measures.