Norway

Norway is not a member of the European Union (EU), but as a member of the European Economic Area (EEA), it participates in the European single market. Through the EEA Agreement, relevant EU legislation in areas including corporate reporting, statutory audit, and financial supervision is incorporated into Norwegian law. As a result, Norway’s accounting and auditing framework is closely aligned with applicable EU Regulations and Directives as implemented through national legislation.

Accounting Framework

Financial reporting requirements in Norway are established under the Accounting Act. The Act sets out the requirements for the preparation of annual financial statements and provides simplified requirements for small entities that fall below specified thresholds.

In accordance with Regulation (EC) No. 1606/2002, as applied through the EEA framework, International Financial Reporting Standards (IFRS) are required for the preparation of consolidated financial statements of companies whose debt or equity securities are traded in a regulated market in Norway. Norway has also exercised national options to permit the use of IFRS in separate financial statements of listed entities and in both consolidated and separate financial statements of certain non-listed entities.

Entities that do not apply IFRS must prepare financial statements in accordance with Norwegian Generally Accepted Accounting Principles (Norwegian GAAP) as established under the Accounting Act and related regulations. Norwegian GAAP is supported by the Norwegian Accounting Standards Board, which issues accounting standards and guidance in accordance with the legal framework. Small entities may apply simplified accounting standards specifically developed for small companies.

The IFRS for Small and Medium-sized Entities (IFRS for SMEs) has not been adopted in Norway.

Auditing Framework

Statutory audit requirements in Norway are governed by the Auditors Act of 2020, which incorporates relevant EU audit legislation into Norwegian law through the EEA framework, including the EU Audit Reform measures.

The Act requires statutory audits to be performed by state authorised public accountants licensed by the Financial Supervisory Authority of Norway (FSA). Mandatory audit requirements apply to entities above specified legal thresholds. Small private limited companies may elect not to have a statutory audit where they fall below the applicable thresholds of operating income, balance sheet total, and number of employees.

Audits and statutory assurance services are required to be performed in accordance with generally accepted auditing and assurance practices. In practice, International Standards on Auditing (ISA) and other pronouncements issued by the International Auditing and Assurance Standards Board (IAASB) are applied as issued and translated into Norwegian.

In Norway, the public accountancy profession is regulated at the state level by the Financial Supervisory Authority of Norway (FSA), an integrated financial sector supervisor operating under the Financial Supervision Act and the Auditors Act of 2020.

The FSA is the competent authority responsible for the regulation and oversight of statutory auditors and audit firms. Its responsibilities include: (i) authorization, approval, and registration of state authorised auditors and audit firms; (ii) supervision of compliance with initial and continuing professional development requirements established in law; (iii) oversight of ethical, independence, and professional conduct requirements applicable to statutory auditors; (iv) operation of the quality assurance review system for statutory audits, including inspections of public interest entity audits and oversight of quality assurance procedures performed by the Norwegian Institute of Public Accountants (Revisorforeningen) for non-public interest entities; and (v) investigation and disciplinary procedures, including the suspension or withdrawal of authorizations and the imposition of sanctions.

The Auditors Act of 2020 regulates statutory auditors authorized to perform statutory audits and certain assurance services in Norway. The Act establishes the requirements for entry into the profession, continuing professional development, independence and ethical obligations, quality assurance, public oversight, and investigation and disciplinary procedures.

State Authorised Public Accountants (SPA) (statsautorisert revisor) are required to complete a master’s degree in accounting and auditing, or an equivalent foreign qualification, and at least three years of varied relevant practical experience in the audit of annual financial statements or equivalent financial reporting, including group reporting. At least one year of this practical experience must be completed after meeting the formal education requirements.

SPAs must also satisfy fit and proper requirements and maintain a good reputation. Authorization is granted by the FSA in accordance with the Auditors Act.

The Financial Supervisory Authority of Norway (FSA) is the independent public oversight authority responsible for the supervision of statutory auditors and audit firms in Norway. Its authority is established under the Financial Supervision Act and the Auditors Act of 2020.

The FSA is responsible for the authorization and registration of statutory auditors and audit firms, quality assurance inspections, oversight of compliance with ethical and independence requirements, and investigation and disciplinary procedures. All statutory auditors and audit firms performing mandatory audits are subject to the public oversight framework administered by the FSA. In addition, the FSA oversees the quality assurance procedures performed by the Norwegian Institute of Public Accountants (Revisorforeningen) for non-public interest entity audits as part of the overall system of public oversight.

The FSA is a member of the International Forum of Independent Audit Regulators (IFIAR).

Norwegian Institute of Public Accountants (Revisorforeningen)

The Norwegian Institute of Public Accountants (Revisorforeningen) is the professional body for State Authorised Public Accountants (SPA) licensed by the Financial Supervisory Authority of Norway (FSA) to practice as statutory auditors in Norway. Membership in the institute is voluntary and comprises most statutory auditors and audit professionals in the jurisdiction.

The objectives of Revisorforeningen include promoting high professional standards among its members, supporting compliance with applicable ethical and professional requirements, representing the interests of the profession in relation to public authorities and the wider public, contributing to professional and technical developments, and supporting the education and continuing professional development of prospective and practicing auditors.

In addition to its role as a professional body for statutory auditors, Revisorforeningen provides technical guidance, professional publications, and continuing professional development programs to support implementation of auditing, ethical, and quality management standards in Norway. The institute also supports quality assurance reviews for non-public interest entity audits under the supervision of the FSA.

Revisorforeningen is a member of the International Federation of Accountants (IFAC), Accountancy Europe, and the Nordic Federation of Public Accountants (NRF). It currently represents approximately 8,400 members and around 500 students working toward qualification as statutory auditors.

The Financial Supervisory Authority of Norway (FSA) is responsible for the overall quality assurance (QA) review system for statutory auditors and audit firms in Norway, in accordance with the Financial Supervision Act and the Auditors Act of 2020.

Under the Auditors Act, auditors and audit firms that audit public interest entities (PIEs) are subject to periodic inspections at least every three years, and these inspections are conducted by the FSA. Other statutory auditors and audit firms are subject to periodic QA reviews at least every six years. For members of the Norwegian Institute of Public Accountants (Revisorforeningen), these reviews are carried out by Revisorforeningen on behalf of the FSA, while the FSA conducts reviews of non-members.

International Standard on Quality Management 1 (ISQM 1) and International Standard on Quality Management 2 (ISQM 2) are adopted and translated into Norwegian. Revisorforeningen has issued implementation materials and updated guidance to support application of the quality management standards.

Based on available information, the QA review system is operational for all mandatory audits and incorporates the key elements of Statement of Membership Obligation 1 (SMO 1). Revisorforeningen reports serious cases to the FSA where findings may warrant regulatory action, and the reviews are conducted as part of the overall system of public oversight.

Current Status: Adopted

In Norway, national legislation regulates initial professional development (IPD) and continuing professional development (CPD) requirements for State Authorised Public Accountants (SPA), who are the statutory auditors in the jurisdiction. Several institutions are involved in the implementation of IPD and CPD requirements, including the Ministry of Education and Research, the Ministry of Finance, the Financial Supervisory Authority of Norway (FSA), the Norwegian Institute of Public Accountants (Revisorforeningen), and accredited universities and business schools. The FSA is the competent authority responsible for the authorization and oversight of SPAs.

IPD requirements include formal education and practical experience requirements established in law. SPAs are required to complete a master’s degree in accounting and auditing, or an equivalent qualification, and demonstrate at least three years of relevant practical audit experience. Candidates must also satisfy fit and proper requirements and maintain a good reputation. Authorization is granted by the FSA in accordance with the Auditors Act of 2020.

Statutory auditors are required by law to complete at least 120 hours of relevant CPD over a three-year period. Revisorforeningen supports implementation by offering an extensive CPD program for its members.

Based on available information, the requirements for SPAs incorporate the key elements of the International Education Standards (IES) in effect as of the time of the assessment, including entry requirements, professional education, practical experience, final assessment, and continuing professional development. Accordingly, the jurisdiction-level status remains Adopted.

Current Status: Adopted

The Auditors Act of 2020 provides the legal framework governing the audit of financial statements in Norway. Under the Act, audits and statutory assurance services must be performed in accordance with generally accepted auditing and assurance practices.

In practice, these requirements are understood to mean application of International Standards on Auditing (ISA) and other pronouncements issued by the International Auditing and Assurance Standards Board (IAASB), as adopted and translated into Norwegian by the Norwegian Institute of Public Accountants (Revisorforeningen).

ISA and other IAASB pronouncements are adopted as issued and are currently aligned with the 2025 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements.

In addition, the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) has been issued in Norway and is effective for audits of financial statements of less complex entities for periods beginning on or after 15 December 2025, with early adoption permitted and encouraged.

Current Status: Adopted

In Norway, the Auditors Act of 2020 requires all statutory auditors and audit firms to comply with principles of professional ethics and independence.

The Act includes ethical and independence requirements aligned with the European Union (EU) Audit Directive and the EU Audit Regulation, including additional independence requirements for public interest entity (PIE) audits. These requirements address auditor independence, professional conduct, confidentiality, acceptance and continuance of engagements, resignation, and responsibilities of the engagement partner.

In addition to the legal framework, the Norwegian Institute of Public Accountants (Revisorforeningen) maintains professional ethical requirements and guidance based on the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA).

Based on available information, the ethical requirements applicable to statutory auditors in Norway are aligned with the 2025 Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards). Revisorforeningen continues to update its professional guidance and resources to reflect revisions issued by the IESBA.

The Financial Supervisory Authority of Norway (FSA) oversees compliance with ethical and independence requirements as prescribed in law.

Current Status: Adopted

The Ministry of Finance (MoF) is responsible for establishing public sector accounting requirements in Norway.

According to the IFAC and Chartered Institute of Public Finance and Accountancy (CIPFA) International Public Sector Financial Accountability Index, central government financial reporting in Norway remains primarily based on a cash basis framework.

In addition, Norway has developed accrual-based national accounting standards and reform initiatives for certain public sector entities and pilot programs. These standards draw on accrual accounting principles and, in some cases, use International Public Sector Accounting Standards (IPSAS) as a reference point. However, IPSAS have not been formally adopted in their entirety for application by all public sector entities.

Current Status: Not Adopted

The Financial Supervisory Authority of Norway (FSA) is responsible for the jurisdiction’s investigation and discipline (I&D) system for statutory auditors and audit firms, in accordance with the Financial Supervision Act and the Auditors Act of 2020.

Under the Auditors Act, the FSA has authority to investigate non-compliance with professional standards and legal requirements applicable to statutory auditors and audit firms and to impose a range of sanctions. These include warnings, administrative fines, withdrawal of authorisation, temporary bans on issuing audit reports, and temporary bans on holding management positions in audit firms or public interest entities (PIEs).

The I&D system is operational in practice. Finanstilsynet’s 2024 annual reporting states that it made one decision to revoke the authorisation of an audit firm, two decisions to revoke the authorisations of state authorised auditors, and three decisions on administrative fines under the Auditors Act. Its 2022 reporting likewise records administrative fines imposed on audit firms for non-compliance with the Auditors Act.

Members of the Norwegian Institute of Public Accountants (Revisorforeningen) who are statutory auditors are subject to this public oversight and sanctioning framework. Revisorforeningen’s quality assurance reviews for members form part of the overall oversight system, and serious findings may be referred to the FSA for further regulatory action.

Based on available information, the jurisdiction-level I&D system is operational for all statutory auditors and audit firms and incorporates the key elements of Statement of Membership Obligation 6 (SMO 6).

Current Status: Adopted

The Accounting Act of 17 July 1997 establishes the financial reporting framework in Norway and defines the types of entities required to prepare a complete set of financial statements, while providing simplified requirements for small entities that fall below specified thresholds.

Through the European Economic Area (EEA) framework, Norway applies Regulation (EC) No. 1606/2002 on the application of International Financial Reporting Standards (IFRS). Accordingly, listed companies are required to prepare consolidated financial statements in accordance with IFRS. In addition, banks, insurance undertakings, and other credit institutions are required to prepare consolidated financial statements in accordance with IFRS, while certain individual financial statements may be subject to specific national adaptations.

Other entities may elect to apply IFRS. Entities that do not apply IFRS prepare financial statements in accordance with Norwegian Generally Accepted Accounting Principles (Norwegian GAAP) as established under the Accounting Act and related regulations.

The Norwegian Accounting Standards Board supports the development of Norwegian GAAP and related accounting guidance.

The IFRS for Small and Medium-sized Entities (IFRS for SMEs) has not been adopted in Norway. According to the IFRS Foundation jurisdiction profile, Norway permits the use of full IFRS for entities beyond listed companies but does not apply the IFRS for SMEs Standard.

Current Status: Adopted

Relevant Organizations

Financial Supervisory Authority of Norway (Finanstilsynet)

Norwegian Institute of Public Accountants (Revisorforeningen)

Norwegian Accounting Standards Board (Norsk RegnskapsStiftelse)

Ministry of Finance, Norway

Relevant Legislation

Auditors Act, 2020 (Lov om revisjon og revisorer)

Financial Supervision Act (Act relating to the Supervision of Financial Institutions, etc.)

Accounting Act, 1998 (Regnskapsloven)

Regulation (EC) No. 1606/2002 on the application of International Financial Reporting Standards (as applied through the EEA framework)

Relevant Publications

IFAC / CIPFA, International Public Sector Financial Accountability Index

IFRS Foundation, IFRS Application Around the World: Jurisdictional Profile – Norway

International Forum of Independent Audit Regulators (IFIAR), Norway Member Profile

Revisorforeningen, ISQM 1 and ISQM 2 implementation guidance

Revisorforeningen, ISA for LCE – Frequently Asked Questions