Norway's Financial Supervisory Authority flags gross audit breaches at Stiansen & Co over NOK 2.37m deferred tax asset and NOK 8.49m receivable

Norway's Financial Supervisory Authority (Finanstilsynet) published an inspection report on Stiansen & Co AS, finding that the auditor in two engagements did not obtain sufficient and appropriate audit evidence, and did not perform review procedures that could support the opinions issued, including shortcomings in professional scepticism. The inspection reviewed selected parts of three engagements. In the statutory audit of the 2023 financial statements (engagement B), Finanstilsynet found breaches of the Auditor Act relating to insufficient audit evidence on valuation of a deferred tax asset of NOK 2,370,735 and on the validity of revenues and existence of other receivables, including an accrued, unbilled revenue/receivable of NOK 8,493,954 linked to a related party where there was no formal contract, invoices or evidence of payment; the authority also identified failures to follow up internal control weaknesses and related-party considerations. In a simplified auditor review of interim financial statements to 30 June 2024 (engagement C), Finanstilsynet found that the auditor carried out no documented procedures on the same deferred tax asset and receivable before signing the review statement, constituting (in part) gross breaches of the Auditor Act and departures from ISRE 2410 requirements. Stiansen & Co AS has initiated an internal review of the relevant engagements, including a root-cause analysis and action plan, and Finanstilsynet will assess implementation in future supervisory work.