FAR

FAR has shared responsibility for quality assurance (QA) in Sweden. The Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors, supervises qualified auditors and registered audit firms and conducts inspections and other oversight activities covering auditors of public interest entities and other qualified auditors. FAR conducts QA reviews for non-public interest entity audit engagements under RI supervision and reports final review decisions to RI.

FAR also maintains QA review arrangements for members who are authorized accounting consultants, certified tax advisors, and authorized payroll consultants. These reviews are conducted on a six-year cycle, with unsatisfactory results referred to FAR’s disciplinary process. FAR continues to support members through guidance, training, and implementation support on quality management systems and QA review expectations.

The QA review system is operational, applies across the statutory audit framework, and is supported by FAR’s ongoing member oversight and implementation activities. FAR has demonstrated sustained fulfillment of its responsibilities under SMO 1. Accordingly, SMO 1 fulfillment is assessed as Sustain.

Current Status: Sustain

FAR has shared responsibility for initial and continuing professional development in Sweden. Initial and continuing professional development requirements for statutory auditors are established under the Auditors Act and related regulations administered by the Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors.

As a voluntary professional accountancy organization, FAR establishes and administers qualification and continuing professional development requirements for its members, including authorized and approved public accountants, authorized accounting consultants, authorized payroll consultants, and certified tax advisors. FAR monitors compliance with continuing professional development requirements through its quality control and member oversight processes.

FAR supports implementation of professional education requirements through a broad range of continuing professional development programs, seminars, conferences, digital learning opportunities, technical publications, and implementation guidance covering auditing, accounting, ethics, quality management, sustainability reporting, and other professional developments. FAR also provides members with practical tools and planning resources to support compliance with continuing professional development obligations and maintenance of professional competence.

FAR has demonstrated sustained fulfillment of its responsibilities under SMO 2 through ongoing education, implementation support, monitoring, and member guidance activities. Accordingly, SMO 2 fulfillment is assessed as Sustain.

Current Status: Sustain

FAR has shared responsibility for the adoption and implementation of International Auditing and Assurance Standards Board pronouncements in Sweden. Under the statutory audit framework, FAR translates and issues auditing and assurance standards for application in the jurisdiction, while the Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors, interprets and evaluates professional pronouncements and determines good auditing practice for statutory auditors.

FAR reports that it has translated and adopted the standards in the 2021 International Auditing and Assurance Standards Board Handbook, except for ISAE 3400, ISAE 3410, and ISRS 4410. More recent pronouncements, including the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, have been translated by FAR, but the jurisdiction has not adopted the latest standards in their entirety.

FAR supports implementation through translations, technical guidance, quality reviews, training courses, and member communications on auditing and assurance developments. FAR also contributes to international standard setting by responding to exposure drafts issued by the International Auditing and Assurance Standards Board.

It is recommended that FAR continue working with relevant stakeholders to address the adoption and translation lag, clarify the status of omitted standards, and support timely adoption and implementation of the latest International Auditing and Assurance Standards Board pronouncements in Sweden.

Current Status: Review & Improve

FAR has shared responsibility for the adoption and implementation of ethical requirements in Sweden. Ethical requirements for statutory auditors and audit firms are established under the Auditors Act and related regulations administered by the Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors. RI recognizes the International Code of Ethics for Professional Accountants, including International Independence Standards, as an important reference for good auditor practice in Sweden.

FAR translates and issues the Code for application in Sweden and monitors amendments issued by the International Ethics Standards Board for Accountants. Recent Swedish translations completed by FAR include revisions related to fees, non-assurance services, quality management, technology, and tax planning.

FAR supports implementation through member communications, continuing professional development, technical guidance, ethics resources, and quality reviews. FAR also contributes to international standard setting by responding to exposure drafts issued by the International Ethics Standards Board for Accountants.

FAR has demonstrated sustained fulfillment of its responsibilities under SMO 4 through ongoing translation, implementation support, monitoring, and engagement in standard setting. Accordingly, SMO 4 fulfillment is assessed as Sustain.

Current Status: Sustain

FAR has no direct responsibility for the adoption of public sector accounting standards in Sweden. Public sector accounting requirements are established by the Ekonomistyrningsverket (ESV), the Swedish National Financial Management Authority, for central government, and the Rådet för kommunal redovisning (RKR), the Swedish Council for Municipal Accounting, for municipalities and regions. Central government accounting is prepared on an accrual basis, and ESV is responsible for developing generally accepted accounting practice for central government.

Sweden applies national accrual-basis public sector accounting standards with reference to International Public Sector Accounting Standards. FAR uses its best endeavors by monitoring developments in public sector financial reporting and international standard setting, disseminating information and technical updates to members, and supporting awareness of developments related to International Public Sector Accounting Standards and broader public sector reporting matters through professional publications, training activities, and technical resources.

FAR has demonstrated sustained fulfillment of its responsibilities under SMO 5, taking into account its lack of direct authority for public sector accounting standard setting. Accordingly, SMO 5 fulfillment is assessed as Sustain.

Current Status: Sustain

FAR has shared responsibility for investigation and discipline in Sweden. The Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors, is responsible for investigation and discipline of statutory auditors and registered audit firms. RI supervises qualified auditors and registered audit firms through inspections, risk-based oversight, enforcement investigations, and thematic oversight, and disciplinary matters are decided by the Disciplinary Board of Public Accountants. RI may open cases based on reports or on its own initiative, and decisions of the Disciplinary Board may generally be appealed before the courts.

FAR operates investigation and disciplinary procedures for members and matters outside RI’s jurisdiction. FAR’s Disciplinary Committee considers complaints regarding members’ possible breaches of good professional practice. Complaints may be submitted by FAR’s quality boards or by parties affected by a member’s compliance with good professional practice. Disciplinary measures may include a reminder, warning, or exclusion from membership, and anonymized decisions are made available to members for guidance.

FAR also supports awareness and implementation through its quality control process, member guidance, professional standards, and publication of disciplinary decisions for learning purposes. FAR’s quality control arrangements cover members who are auditors or hold FAR authorization titles, and FAR’s disciplinary process is linked to quality review outcomes where relevant.

FAR has demonstrated sustained fulfillment of its responsibilities under SMO 6 through an operational disciplinary process, linkage with quality control, member guidance, and coordination with RI where matters fall under public oversight. Accordingly, SMO 6 fulfillment is assessed as Sustain.

Current Status: Sustain

FAR has no direct responsibility for setting corporate accounting standards in Sweden. International Financial Reporting Standards (IFRS) as adopted by the European Union are required for the consolidated financial statements of companies whose securities are admitted to trading on a regulated market, and are also required for the consolidated financial statements of certain regulated financial institutions. Other entities apply national accounting standards issued by the Bokföringsnämnden (BFN), the Swedish Accounting Standards Board, while the Rådet för finansiell rapportering (RFR), the Council for Financial Reporting, issues supplementary guidance for listed entities applying IFRS.

FAR uses its best endeavors by supporting members with education, training, technical guidance, publications, and updates on the implementation of adopted accounting standards, including IFRS, Swedish generally accepted accounting principles, and sustainability reporting developments. FAR also engages with relevant national standard setters and contributes to international standard-setting processes where appropriate.

FAR has demonstrated sustained fulfillment of its responsibilities under SMO 7, taking into account its lack of direct authority for corporate accounting standard setting. Accordingly, SMO 7 fulfillment is assessed as Sustain.

Current Status: Sustain