The Norwegian Financial Supervisory Authority (Finanstilsynet) published an inspection report on an audit firm following an on-site review on 21–22 May 2024, finding deficiencies in the firm’s quality management system, its compliance with anti-money laundering (AML) requirements, and the performance and documentation of selected audit engagements. The inspection was prompted by reports from the Norwegian Institute of Public Accountants (DnR) after unsatisfactory quality reviews in 2022 and 2023, and covered the firm’s organisation and procedures as well as six selected audits for the 2023 financial year. Identified weaknesses included the absence of formal monitoring controls required under the Auditors Act and ISQM 1, inadequate policies and procedures for outsourced functions, and inconsistencies between the firm’s earlier self-reporting and the inspection findings. On AML, Finanstilsynet found an insufficient business-wide risk assessment, undocumented and overly uniform client risk classifications across the firm’s 116 audit clients, and gaps in customer due diligence and politically exposed person screening. In the reviewed audits, shortcomings included inadequate understanding of the audited entities, overly superficial risk assessments and planning, insufficient audit evidence on revenue completeness and other key areas, and documentation that did not support the work claimed to have been performed. One engagement also showed incomplete documentation of the auditor’s independence assessment in relation to a business relationship with the audit client. The report notes that the audit firm did not comment on Finanstilsynet’s preliminary report and that the firm is being wound up, with its authorisation deleted with effect from 30 September 2025, meaning no further supervisory follow-up of the identified weaknesses will be pursued.

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