Auditing
Last published: 12 March 2025
Market participants’ confidence in financial reporting by the business sector is key to a well-functioning market. High audit quality contributes to increased confidence. In 2024, Finanstilsynet carried out inspections at three audit firms that audit public interest entities and 27 other audit firms. Regulatory violations have in some cases resulted in administrative fines or the revocation of authorisations.
Facts about auditing in Norway
There are 435 audit firms in Norway, seven of which audit public interest entities.
At the end of December 2024, 4 493 persons were authorised as state authorised auditors. These persons may act as audit partners in audit firms and sign audit reports and other auditor’s statements. 43 of the state authorised auditors had registered sole proprietorships in the Register of Business Enterprises.
83 of the state authorised auditors are also authorised as sustainability auditors.
The auditor register provides an overview of the audit firms and persons that are authorised by Finanstilsynet.
Supervision
Auditors auditing public interest entities, i.e. companies that have issued securities on Oslo Børs (listed companies), banks, insurers and mortgage companies, shall, pursuant to the Auditors Act, be subject to periodic inspections conducted by Finanstilsynet at least every three years. Other auditors are to be subject to periodic reviews at least every six years. The Norwegian Institute of Public Accountants carries out these reviews of its members on behalf of Finanstilsynet. In addition, Finanstilsynet conducts risk-based supervision based on signals and reports to ensure that audit firms and audit performance are compliant with the Norwegian Auditors Act and good auditing practices.
- Letter from the Norwegian Institute of Public Accountants: Annual report on quality assurance of auditors (2024) (in Norwegian only)
Supervisory activity in 2024
Finanstilsynet completed three inspections initiated in 2023 of audit firms that audit public interest entities. All three received administrative fines for violating both the Auditors Act and the Anti-Money Laundering Act.
In 2024, Finanstilsynet carried out inspections at three other audit firms that audit public interest entities. One of these was conducted jointly with the US Public Company Accounting Oversight Board (PCAOB).
Finanstilsynet also conducted inspections at three audit firms as part of a fraud case related to alleged credit intermediation. In addition, there was an inspection at an audit firm that provided assurance conclusions in accordance with company legislation without having performed statutory audits for any of its audit clients. The audit firm has terminated its audit activities.
Finanstilsynet carried out inspections at 23 other audit firms based on risk-based selection in 2024. Finanstilsynet made one decision to revoke the authorisation of an audit firm, two decisions torevoke the authorisations of state authorised auditors, three decisions on administrative fines under the Auditors Act and two administrative fines under the Anti-Money Laundering Act.
All audit firms that audit public interest entities issue reports to Finanstilsynet on the performance of each audit engagement. The information is used to follow up audit firms and in statistics and information about the audit market.
In 2024, Finanstilsynet conducted an off-site inspection of all audit firms where they had to report on their compliance with legal and regulatory requirements on corporate governance.
Authorisations
In 2024, 18 firms were authorised as audit firms and 1 312 persons were authorised as state authorised auditors.
There has been a significant increase in the number of persons who have applied to be authorised as state authorised auditors due to the transitional arrangement in the Auditors Act that expired on 31 December 2023. Under the previous Act, all state authorised auditors were listed in the Register of Auditors. Under current law, those who were not authorised to undertake audit engagements prior to 31 December 2023 must apply for an auditor register number to remain in the register. The authorisations of those who have not done this were placed in escrow, and they can no longer use the title of state authorised auditor.
In 2024, Finanstilsynet developed and launched a new Altinn form for applying for authorisation as a sustainability auditor. In 2024, 83 state authorised auditors were authorised as sustainability auditors.
Analysis and monitoring
Finanstilsynet continuously monitors the audit industry as a basis for its risk-based approach to supervision. The off-site inspection carried out by Finanstilsynet in 2024 included all audit firms, and it provides a good overview of the industry and is a sound basis for other supervisory follow-up. Finanstilsynet also gains good insight from the reporting from public interest entities on how the audit has been performed.
Regulatory development
Finanstilsynet participated in European and global supervisory cooperation through CEAOB and IFIAR (International Forum of Independent Audit Regulators).
In 2024, Finanstilsynet submitted a consultative statement on proposed amendments to the Auditors Regulations on the implementation of the EU’s Corporate Sustainability Reporting Directive (CSRD).
Finanstilsynet also submitted a consultation statement concerning the Norwegian Institute of Public Accountants’ proposal to introduce a standard for auditing less complex entities in Norway.
In addition, Finanstilsynet prepared a consultation document on rules on educational requirements, practical training and transitional arrangements for sustainability auditors.