The Financial Supervisory Authority of Norway published an inspection report and decision imposing an administrative fine of NOK 300,000 on audit firm Revisor-Partner AS after a document-based review of selected parts of one audit engagement. The supervisor found multiple serious, and in several areas gross, breaches of the Auditor Act linked to acceptance and planning, the sufficiency of audit evidence, professional scepticism, engagement partner involvement, and the basis for an auditor confirmation related to a capital increase. The decision cites violations of the Auditor Act sections 9-3, 9-4 and 9-10, with the fine imposed under section 14-5. Key findings include a deficient client acceptance assessment, including lack of documented assessment of competence for an IFRS audit and inadequate assessment of management integrity, insufficient understanding of the audited entity and internal control, and audit work overly reliant on management representations with limited tailored testing for material balance sheet items and estimates. The report also highlights weak identification and assessment of fraud and related-party risks, inadequate work on financial statement presentation and note disclosures, limited documented involvement by the engagement partner, and insufficient work under SA 3802 when confirming a directed share issue largely settled by set-off of claims in a transaction involving related parties. Separately, the supervisor identified a deficient anti-money laundering risk assessment under the Anti-Money Laundering Act section 9. Revisor-Partner AS may appeal to the Financial Supervisory Authority of Norway within three weeks of receipt, with the appeal handled by the Finanstilsynet Appeals Board. The supervisor also indicated it will consider follow-up of the firm’s quality management focus on acceptance and continuance assessments, referencing shortcomings identified in the firm’s earlier self-evaluations.
Norwegian Finanstilsynet 2025-05-07
Financial Supervisory Authority of Norway fines Revisor-Partner AS NOK 300000 for serious breaches of the Auditor Act
The Financial Supervisory Authority of Norway fined Revisor-Partner AS NOK 300,000 for serious breaches of the Auditor Act, including deficiencies in client acceptance, audit evidence sufficiency, and professional scepticism. The report highlighted inadequate assessments of management integrity, reliance on management representations, insufficient fraud risk identification, and a deficient anti-money laundering risk assessment, with potential follow-up actions on the firm's quality management practices.