Norway's Financial Supervisory Authority has published an inspection report on AS Revision concluding that the audit firm committed several serious breaches of the Auditors Act and good auditing practice in three audit engagements. The shortcomings covered the mapping of key processes at audited entities, insufficient appropriate audit evidence for key items, inadequate follow-up of fraud risk and a broader failure to exercise professional skepticism. The authority said the pattern of serious deficiencies may indicate that the firm did not have satisfactory quality management to ensure its policies and procedures were followed. In the files reviewed, one engagement involved auditor confirmations on the handling of client funds at a law firm without sufficient audit procedures. Two other engagements showed deficiencies in audit planning and understanding of the business and relevant internal controls, and in both cases the auditor failed to obtain sufficient appropriate evidence on revenue. In one of those engagements, the auditor also failed to assess whether weaknesses in project accounting breached bookkeeping rules and did not communicate the issue to the board. Across all three engagements, management statements were relied on without supporting documentation or further assessment. The review followed a 2025 referral relating to deficiencies found at a law firm audited by AS Revision. All three engagements were handled by the same engagement partner, who is being followed up in a separate supervisory case and no longer works at the firm. AS Revision has submitted a root cause analysis and described planned and implemented remedial measures, which the authority considers capable of preventing recurrence, and the firm will be followed up in later supervisory work.
Norwegian Finanstilsynet 2026-04-17
Norway's Financial Supervisory Authority finds serious audit law breaches at AS Revision and flags quality management concerns
The Financial Supervisory Authority of Norway has published an inspection report finding that audit firm AS Revision committed serious breaches of the Auditors Act and good auditing practice across three engagements, including inadequate process mapping, insufficient audit evidence, weak fraud risk follow-up and lack of professional skepticism. The authority said the pattern of deficiencies may indicate unsatisfactory quality management, and noted that the same engagement partner was involved in all three cases and is subject to a separate supervisory case. AS Revision has submitted remedial measures, which the authority considers capable of preventing recurrence, and the firm will be subject to further supervisory follow-up.