The Norwegian Financial Supervisory Authority (Finanstilsynet) has decided to revoke the authorisation of a state-authorised auditor, citing gross breaches of audit legislation in the performance of audit engagements, including failures to obtain sufficient and appropriate audit evidence. The revocation is set to apply from 31 December 2025. The decision follows an inspection carried out from March to June 2025 of the auditor’s sole proprietorship, triggered by a referral from the Norwegian Institute of Public Accountants (DnR) after unsatisfactory quality reviews in 2023 and 2024. Finanstilsynet reviewed audit files for five selected engagements (covering audits of 2023 and 2024 financial statements) and certain engagement acceptance assessments, and identified serious shortcomings including inadequate client acceptance evaluations, extensive use of standardised documentation that did not reflect the actual engagement circumstances, deficient understanding and assessment of internal controls and audit risk, and insufficient audit work on key areas such as revenue completeness, subsequent events, and going concern. The review also found improper signing of tax control statements and failures to communicate identified breaches in writing to company boards. Finanstilsynet concluded that the breaches, individually and cumulatively, were gross and rendered the auditor unfit; the revocation means the individual can no longer use the title “state-authorised auditor”, cannot operate an audit practice as a sole proprietor, and cannot act as engagement partner or be responsible for quality management in an audit firm, although they may work as an employee. The decision can be appealed within three weeks of receipt to the Finanstilsynet Appeals Board, with the appeal submitted to Finanstilsynet, and the auditor may apply for deferred implementation.
Norwegian Finanstilsynet 2025-10-27
Norwegian Financial Supervisory Authority revokes a state-authorised auditor’s authorisation effective 31 December 2025
The Norwegian Financial Supervisory Authority (Finanstilsynet) has revoked a state-authorised auditor's authorisation due to gross breaches of audit legislation, including inadequate audit evidence and improper client acceptance evaluations. This decision follows an inspection revealing serious shortcomings in audit practices and takes effect on 31 December 2025. The auditor can appeal within three weeks and may apply for deferred implementation.