The Norwegian Financial Supervisory Authority has published an inspection report and decision revoking a state-authorised accountant’s authorisation after finding extensive and serious breaches of the accountancy framework, including deficient quality management, anti-money laundering non-compliance and significant shortcomings in the performance of client engagements. The revocation took effect on 19 January 2026. The inspection reviewed 2023 documentation for three accounting engagements where the individual was the engagement-responsible accountant and also held senior roles in the accounting firm. Findings included the absence of an adequate quality management system and written routines, including for outsourced work, and material deficiencies across all sampled engagements. The firm also failed to provide key documentation requested by the supervisor. AML shortcomings included customer risk classification completed after the inspection for two engagements, missing identity checks for a beneficial owner holding 70% of one client, and missing politically exposed person screening. In client work, the authority found failures to assess clients’ internal routines, deliver periodic reports as agreed, and reconcile and document significant balance sheet accounts, with 31%, 71% and 33% of checked accounts still undocumented or inadequately documented across the three engagements after additional submissions. Separately, the authority found the individual provided services to 12 clients via a sole proprietorship that was not registered as an approved accounting firm, was not registered in the relevant registers and had not appointed an auditor. The decision prevents the individual from using the state-authorised accountant title and from operating accounting services as a sole proprietor or acting as engagement-responsible or quality-management responsible in an accounting firm, while allowing employment as a staff member. The decision can be appealed within three weeks of receipt, with the option to request deferred implementation.
Norwegian Finanstilsynet 2026-03-11
Norwegian Financial Supervisory Authority revokes a state-authorised accountant’s approval after major quality control and AML breaches
The Norwegian Financial Supervisory Authority revoked a state-authorised accountant's authorisation for extensive breaches, including deficient quality management and anti-money laundering non-compliance. The inspection revealed significant shortcomings in client engagements and services through an unregistered sole proprietorship. Effective 19 January 2026, the decision restricts the individual from using the accountant title or operating accounting services independently.