The Financial Supervisory Authority of Norway published a supervisory report and decision revoking an accounting services company’s authorisation as an accounting firm after an inspection identified extensive and serious shortcomings in both firm governance and the delivery of accounting engagements, alongside adverse financial circumstances. The review covered, among other areas, compliance with good accounting practice and relevant requirements under the Accounting Act, the Bookkeeping Act and anti-money laundering rules, and included full or partial testing of three client engagements (A–C). Governance findings included late approval and filing of the firm’s 2023 annual accounts, failures to submit VAT returns on time for 2023 and 2024, late VAT payments with a forced-collection notice for the third and fourth VAT terms of 2024, late filing of the 2023 tax return, the auditor’s reported non-compliant handling of withheld tax funds, and an unlawful loan of approximately NOK 1 million to a shareholder (subsequently repaid). Finanstilsynet also found that the firm submitted a self-reporting form containing knowingly incorrect answers about overdue public claims and timely compliance, and noted capacity constraints in 2023 and 2024 that were not addressed while the firm continued to accept additional engagements. Across the tested engagements, recurring deficiencies included failure to assess clients’ internal routines, absence of required quality assurance under the GRFS industry standard, missing written engagement documentation in one case, material deficiencies in 2023 annual accounts (including missing notes and missing going-concern uncertainty disclosures), unsupported recognition of deferred tax assets (NOK 1,127 and NOK 180,433 in two engagements), and lack of documented balance reconciliations and other required working papers.
Norwegian Finanstilsynet 2025-10-22
Financial Supervisory Authority of Norway revokes accounting firm's authorisation after finding extensive and serious deficiencies
Norway's Financial Supervisory Authority revoked an accounting firm's authorization after a report revealed serious governance and accounting deficiencies. The inspection highlighted failures in compliance with the Accounting Act, Bookkeeping Act, and anti-money laundering rules, including late filings, unlawful loans, and incorrect self-reporting. The firm also showed capacity issues and recurring deficiencies in client engagements, such as missing documentation and unsupported financial statements.