The Financial Supervisory Authority of Norway has imposed a NOK 400,000 administrative fine on FGH Revisjon AS for serious breaches of the Auditors Act in two audits of companies that received public funding. The authority found that the firm failed to obtain sufficient and appropriate audit evidence and did not exercise adequate professional skepticism. Across the two audits of 2024 financial statements, FGH Revisjon did not perform necessary procedures addressing fraud risks, related-party transactions or the completeness, validity and cut-off of revenue. Other deficiencies included an unsupported materiality assessment, inadequate testing of significant costs, failure to assess revenue recognition principles and incorrect dating of an audit report. The authority characterized the breaches as repeated and gross, noting that the firm had 2024 revenue of NOK 11.7 million and net income of NOK 1.7 million when setting the fine. FGH Revisjon plans to strengthen its internal processes with engagement partners to improve audit quality. The authority will follow up the firm in future supervisory work.
2026-08-19Norwegian Finanstilsynet
Financial Supervisory Authority of Norway fines FGH Revisjon NOK 400,000 for serious audit law breaches
The Financial Supervisory Authority of Norway fined FGH Revisjon AS NOK 400,000 for serious breaches in two audits of companies receiving public funding. The firm failed to obtain sufficient audit evidence on fraud risks, related-party transactions, revenue and significant costs, and did not exercise adequate professional skepticism. The authority will follow up the firm through future supervision.