The Financial Supervisory Authority of Norway has published an inspection report identifying breaches of the Auditors Act and auditing standards in all four Unic Revisjon AS engagements reviewed, some classified as serious. The review found insufficient appropriate audit evidence to support the audit reports issued. The firm must strengthen its quality management to ensure engagements comply with legal and professional requirements.
Deficiencies affected material revenue, deferred tax assets, equity investments and purchases of goods. Required procedures addressing management override of controls were missing in all four audits, while work on transactions with related parties was inadequate. In two engagements, planned tests of internal controls over revenue were not performed. In another serious failing, the auditor did not assess risks or obtain sufficient evidence for a deferred tax asset representing 26% of total assets, despite the client having incurred substantial losses over the preceding three years.
The firm’s monitoring and remediation arrangements had not adequately addressed previously identified weaknesses. A 2025 inspection had found breaches in 14 of 15 engagements and resulted in a penalty. Quality management must comply with Section 7-1 of the Auditors Act and International Standard on Quality Management 1 (ISQM 1), with procedures tailored to the firm’s business. Unic Revisjon reported measures already implemented and further action planned. Subsequent inspections will assess implementation, including whether cyclical engagement reviews use representative selections based on risks in engagement partners’ portfolios.