The Norwegian Financial Supervisory Authority published an inspection report and decision imposing an administrative penalty of NOK 300,000 on Enter Revisjon AS after finding extensive breaches of the Norwegian Auditor Act in the audit of a kindergarten that received public subsidies. The authority concluded that, over multiple years, the audit work lacked necessary procedures and professional scepticism and that statutory confirmations were provided without a sufficient basis, which it linked to improper use of public funds. The findings cover the audits of the 2022 and 2023 financial statements and the firm’s engagement continuation assessments for 2023 and 2024. Key shortcomings included insufficient and poorly documented audit evidence on revenues and costs, inadequate scrutiny of related-party transactions, weak work on fraud risks, fixed assets valuation and going-concern assessments, errors in the 2022 and 2023 audit reports, and failure to withdraw from the engagement despite repeated serious issues at the client. The case was triggered by a report connected to a Directorate of Education repayment decision relating to 2023 grants, including related-party loans of about NOK 1.694 million and a NOK 750,000 loss provision, and the supervisor found the auditor lacked a basis to attest that the Basil reporting to the Directorate complied with the Kindergarten Act requirements. In setting the penalty, Finanstilsynet referenced the statutory cap (up to NOK 10 million or 2% of turnover), the firm’s 2023 turnover of NOK 20.7 million, and the potential economic benefit from not performing necessary audit work. Enter Revisjon AS may appeal within three weeks, with collection handled by the Norwegian Tax Administration after the appeal deadline or after any appeal is resolved. Finanstilsynet expects the firm to identify root causes and implement corrective measures and may assess the follow-up in future supervisory work.
Norwegian Finanstilsynet 2026-02-05
Norwegian Financial Supervisory Authority imposes NOK 300,000 penalty on Enter Revisjon for Auditor Act breaches in publicly funded kindergarten audit
The Norwegian Financial Supervisory Authority imposed a NOK 300,000 penalty on Enter Revisjon AS for extensive breaches of the Norwegian Auditor Act in audits of a publicly subsidized kindergarten. The firm failed to perform necessary audit procedures, lacked professional scepticism, and improperly attested statutory confirmations, linked to misuse of public funds. The penalty considered the firm's 2023 turnover and potential economic benefits from inadequate audits.