Sweden

As a member of the European Union (EU), Sweden is subject to accounting, auditing, and financial reporting requirements established through EU Regulations and Directives as transposed into national legislation. Sweden has aligned its legal and regulatory framework with the EU acquis communautaire relating to corporate reporting, statutory audit, and professional oversight.

Accounting Framework

The accounting framework in Sweden is primarily established through the Annual Reports Act (1995:1554), which incorporates the requirements of the EU Accounting Directive and establishes financial reporting requirements based on entity size and public interest status.

The Bokföringsnämnden (BFN), the Swedish Accounting Standards Board, is the governmental authority responsible for developing generally accepted accounting principles for non-listed entities and issuing national accounting standards and guidance. Sweden has not adopted the IFRS for Small and Medium-sized Entities (IFRS for SMEs). Instead, BFN has developed the K3 framework (BFNAR 2012:1), which is based on IFRS for SMEs and serves as the principal accounting framework for larger private entities. Smaller entities may apply simplified national standards issued by BFN, including K2 (BFNAR 2016:10), subject to eligibility criteria.

The Finansinspektionen (SFSA), the Swedish Financial Supervisory Authority, is responsible for prudential supervision and financial reporting oversight of regulated financial institutions, including banks, insurance undertakings, and other financial entities. The Rådet för finansiell rapportering (RFR), the Council for Financial Reporting, issues supplementary reporting guidance for listed entities applying International Financial Reporting Standards (IFRS).

In accordance with EU Regulation (EC) No. 1606/2002 and national legislation, companies whose securities are admitted to trading on a regulated market are required to prepare consolidated financial statements in accordance with EU-endorsed IFRS. Public interest entities, including listed companies, credit institutions, and insurance undertakings, are therefore required to apply EU-endorsed IFRS in their consolidated financial statements. Certain non-listed entities may also elect to apply IFRS voluntarily.

Auditing Framework

Statutory audit requirements in Sweden are established under the Auditors Act (2001:883), the Companies Act (2005:551), and the Auditing Act (1999:1079), which incorporate the requirements of the EU Statutory Audit Directive and related EU audit reform measures, including Regulation (EU) No. 537/2014 applicable to statutory audits of public interest entities.

Swedish legislation requires statutory audits for companies meeting prescribed size thresholds and for entities designated by law as public interest entities. Small companies are exempt from statutory audit where they do not exceed more than one of the following thresholds: net turnover of SEK 3 million, total assets of SEK 1.5 million, and an average of three employees.

The Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors, is the independent public oversight authority responsible for the approval, registration, supervision, and discipline of statutory auditors and audit firms. The RI also oversees the quality assurance system and supervises the audit profession in accordance with applicable legislation.

Audits in Sweden are required to be conducted in accordance with generally accepted auditing standards. FAR, the principal professional accountancy organization in the jurisdiction, is responsible for translating and issuing International Standards on Auditing (ISA) and other international pronouncements for application in Sweden. The RI has authority to interpret and evaluate the application of auditing standards and professional practice within the jurisdiction. FAR reports that Sweden applies the 2021 International Auditing and Assurance Standards Board Handbook, with certain exclusions including ISAE 3400, ISAE 3410, and ISRS 4410.

Only statutory auditors are regulated at the state level in Sweden. Authorized public accountants and approved public accountants are regulated by the Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors, in accordance with the Auditors Act. RI is a governmental authority under the Ministry of Justice and is responsible for matters relating to auditors and auditing, including auditor examinations, authorization of auditors, and registration of audit firms.

RI supervises qualified auditors and registered audit firms through inspections, risk-based oversight, enforcement and investigations, and thematic oversight. RI’s inspection activities cover auditors and audit firms involved in audits of public interest entities as well as other qualified auditors. Disciplinary matters are considered by the Disciplinary Board of Public Accountants within RI.

Entry into the statutory audit profession is regulated by RI. To become an authorized auditor, candidates must complete at least six years of post-secondary theoretical and practical training and pass the auditor examination administered by RI. Authorization also requires that the individual performs audit activities in a professional capacity and resides in Sweden or another state within the European Economic Area.

Other segments of the accountancy profession, including accounting consultants, payroll consultants, and tax advisors, are not regulated at the state level in the same manner as statutory auditors. These professionals may voluntarily join a professional accountancy organization and become subject to that organization’s membership, qualification, continuing professional development, quality control, ethical, and disciplinary requirements.

FAR is the principal professional accountancy organization in Sweden and operates on a voluntary membership basis. Its members include authorized and approved public accountants, authorized accounting consultants, authorized payroll consultants, and certified tax advisors. FAR supports the development of professional standards, education, and information for the accountancy profession and contributes to the work of international and regional accountancy organizations, including the International Federation of Accountants, the International Accounting Standards Board, Accountancy Europe, and the Nordic Federation of Public Accountants.

FAR’s responsibilities include translating and issuing international standards and ethical requirements for application by its members, supporting implementation of accounting and auditing standards, monitoring members’ continuing professional development, administering qualifications for authorized accounting consultants, authorized payroll consultants, and certified tax advisors, and operating internal quality control and investigation and disciplinary arrangements for members.

Another professional accountancy organization operating in Sweden is Srf Konsulterna (Srf). Srf is a voluntary organization for accounting and payroll consultants. It provides authorization pathways for accounting consultants, including requirements based on higher education and practical experience or extensive professional experience. Srf members provide services in bookkeeping, payroll management, and advisory, and its authorized members are subject to continuing professional development and quality assurance requirements.

Independent public oversight of the audit profession in Sweden is established under the Auditors Act and related legislation governing statutory auditors and audit firms.

The Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors, is the independent public oversight authority responsible for the supervision of statutory auditors and registered audit firms in Sweden. RI operates as a governmental authority under the Ministry of Justice.

RI is responsible for administering auditor examinations; authorizing and approving statutory auditors; registering audit firms; conducting inspections and quality assurance reviews; supervising compliance with auditing, ethical, and professional requirements; and administering investigation and disciplinary procedures for auditors and audit firms. Oversight activities include inspections of auditors performing audits of public interest entities as well as other qualified auditors and registered audit firms.

The oversight framework also includes risk-based supervision, enforcement investigations, and thematic inspections. Disciplinary matters are considered by the Disciplinary Board of Public Accountants within RI.

RI participates in international regulatory cooperation and represents Sweden within the Committee of European Auditing Oversight Bodies. RI is also a member of the International Forum of Independent Audit Regulators, which promotes cooperation and consistency among independent audit oversight authorities globally.

FAR

FAR was established in 1923 as a voluntary professional accountancy organization representing auditors and other accountancy professionals in Sweden. In 2006, FAR merged with Svenska Revisorsamfundet (SRS), expanding its membership base to include approved public accountants and a broader range of professionals working in public practice and advisory services.

Today, FAR represents authorized public accountants, approved public accountants, authorized accounting consultants, authorized payroll consultants, tax advisors, and accounting and audit firms operating in Sweden. Membership in FAR remains voluntary.

FAR plays a significant role in supporting the development and regulation of the profession in Sweden. Its responsibilities include translating and issuing international auditing and ethical standards for application by members, supporting implementation of accounting and auditing standards, administering professional qualifications for authorized accounting consultants, authorized payroll consultants, and certified tax advisors, monitoring compliance with continuing professional development requirements, conducting quality control reviews for members operating outside the public interest entity audit segment, and administering investigation and disciplinary procedures for members.

FAR also provides education and training programs at both initial and continuing professional development levels and publishes professional guidance, journals, books, and digital resources for the profession.

In addition to being a member of the International Federation of Accountants, FAR is a member of Accountancy Europe and the Nordic Federation of Public Accountants.

Srf Konsulterna (Srf)

Srf Konsulterna (Srf) was established in 1936 as a voluntary professional accountancy organization representing accounting consultants, payroll consultants, and business advisors in Sweden.

Srf provides authorization pathways and professional qualifications for accounting and payroll consultants. Its members are subject to continuing professional development requirements, ethical requirements, and periodic quality assurance reviews. Srf also provides education, professional guidance, advisory support, and technical resources for its members.

Authorized members of Srf are required to complete continuing professional development and are subject to recurring quality controls to maintain their authorization status. Members are also required to comply with professional ethical requirements applicable within the jurisdiction.

Srf is not a member of the International Federation of Accountants.

The quality assurance (QA) review system in Sweden is established under the Auditors Act and is administered by the Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors. RI supervises qualified auditors and registered audit firms and conducts inspections covering auditors and audit firms involved in audits of public interest entities as well as other qualified auditors. RI’s oversight also includes risk-based supervision, investigations, and thematic inspections.

FAR supports the system through member quality controls for non-public interest entity audit engagements, under the oversight framework established by RI. International Standards on Quality Management (ISQM) are adopted in Sweden, including ISQM 1 and ISQM 2, which are included in the current IAASB quality management framework.

The QA review system is operational for all statutory audits and incorporates the relevant requirements of SMO1.

Current Status: Adopted

Initial and continuing professional development requirements for statutory auditors in Sweden are established under the Auditors Act and related regulations administered by the Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors. Responsibility for establishing and administering education, practical experience, examination, and continuing professional development requirements rests primarily with RI.

To qualify as an authorized auditor, candidates are generally required to complete at least six years of post-secondary theoretical and practical education and training, including a bachelor’s degree, practical experience, and the professional competence examination administered by RI. Additional practical experience requirements apply for auditors seeking authorization to perform sustainability assurance engagements.

Continuing professional development requirements are established and monitored at the jurisdiction level. Authorized and approved auditors are required to complete at least 100 verifiable hours of continuing professional development over a five-year period, subject to oversight and verification by RI.

In addition to statutory auditors, voluntary professional qualifications are administered by professional accountancy organizations, including FAR and Srf Konsulterna (Srf), for accounting consultants, payroll consultants, and tax advisors. These organizations establish continuing professional development, ethical, and quality review requirements for their members.

The jurisdiction-level framework for statutory auditors is assessed as aligned with the International Education Standards (IES) in effect as of the time of the assessment. Accordingly, IES are assessed as Adopted.

Current Status: Adopted

Statutory audit requirements in Sweden are established under the Auditors Act (2001:883), the Companies Act, and related legislation governing statutory audits. Audits are required to be conducted in accordance with generally accepted auditing standards and practices.

FAR is responsible for translating and issuing International Standards on Auditing and other International Auditing and Assurance Standards Board pronouncements for application in Sweden. The Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors, is responsible for interpreting and evaluating the application of auditing standards and determining good auditing practice within the jurisdiction.

According to FAR and the IFAC translations database, Sweden applies the 2021 International Auditing and Assurance Standards Board Handbook, with certain exclusions, including ISAE 3400, ISAE 3410, and ISRS 4410, while continuing to translate and publish more recent pronouncements and updates.

As the jurisdiction has not adopted the latest International Standards on Auditing in effect as of the time of the assessment, the standards are assessed against the 2026 adoption definitions as Partially Adopted.

Sweden adopted the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

Current Status: Partially Adopted

Ethical requirements for statutory auditors and audit firms in Sweden are established under the Auditors Act (2001:883) and related regulations administered by the Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors. Statutory auditors are required to comply with principles of professional ethics and independence in the performance of their professional activities.

FAR is responsible for translating and issuing the International Code of Ethics for Professional Accountants, including International Independence Standards, for application in Sweden. RI interprets and evaluates the application of ethical requirements and good professional practice within the jurisdiction.

According to the IFAC translations database, FAR has translated and published recent International Ethics Standards Board for Accountants pronouncements and amendments on an ongoing basis, including revisions related to fees, non-assurance services, quality management, and the role and mindset expected of professional accountants.

Current Status: Adopted

Public sector accounting requirements in Sweden are established at the jurisdiction level. The Ekonomistyrningsverket (ESV), the Swedish National Financial Management Authority, is responsible for central government financial management and accounting requirements, while the Rådet för kommunal redovisning (RKR), the Swedish Council for Municipal Accounting, sets accounting standards and recommendations for municipalities and regions.

Sweden applies national accrual-basis public sector accounting standards. The International Public Sector Financial Accountability Index identifies Sweden as using national accrual standards with reference to International Public Sector Accounting Standards.

The jurisdiction has not adopted IPSAS Accounting Standards directly or in full for all public sector entities. Accordingly, IPSAS are assessed as Partially Adopted.

Current Status: Partially Adopted

The investigation and discipline (I&D) system for statutory auditors and registered audit firms in Sweden is established under the Auditors Act (2001:883).

The Revisorsinspektionen (RI), the Swedish Inspectorate of Auditors, supervises qualified auditors and registered audit firms and conducts investigations based on reports, risk factors, or matters opened on its own initiative. Disciplinary matters are considered by the Disciplinary Board of Public Accountants within RI. RI’s oversight includes inspections, risk-based supervision, enforcement investigations, and thematic oversight.

Sanctions may include disciplinary measures against statutory auditors and registered audit firms, including warnings, withdrawal of authorization or approval, and removal of audit firm registration. RI publishes disciplinary practice and decisions through its public practice database. Decisions may be appealed in accordance with the general administrative court process.

FAR also operates member disciplinary procedures for matters involving members outside RI’s jurisdiction, while Srf Konsulterna (Srf) maintains procedures for monitoring compliance with its membership requirements.

The jurisdiction-level I&D system is operational for statutory auditors and registered audit firms and is assessed as aligned with the relevant requirements of SMO 6.

Current Status: Adopted

The financial reporting framework in Sweden is established under the Annual Reports Act and related legislation. At the jurisdiction level, International Financial Reporting Standards (IFRS) as adopted by the European Union are required for the consolidated financial statements of all domestic companies whose securities are admitted to trading on a regulated market. EU-endorsed IFRS are also required for the consolidated financial statements of credit institutions, investment firms, and insurance companies under rules issued by the Finansinspektionen, the Swedish Financial Supervisory Authority.

The Bokföringsnämnden (BFN), the Swedish Accounting Standards Board, is responsible for developing generally accepted accounting principles for non-listed entities. The Rådet för finansiell rapportering (RFR), the Council for Financial Reporting, issues supplementary reporting guidance for listed entities applying IFRS.

The jurisdiction-level framework requires EU-endorsed IFRS for all domestic publicly accountable entities in consolidated financial statements. Accordingly, IFRS are assessed as Adopted.

Sweden, however, has not adopted the IFRS for Small and Medium-sized Entities Accounting Standard.

Current Status: Adopted

Relevant Organizations

Bokföringsnämnden (BFN) – Swedish Accounting Standards Board

Ekonomistyrningsverket (ESV) – Swedish National Financial Management Authority

FAR

Finansinspektionen (SFSA) – Swedish Financial Supervisory Authority

IFRS Foundation – IFRS Use Around the World: Sweden

International Public Sector Financial Accountability Index

Rådet för kommunal redovisning (RKR) – Swedish Council for Municipal Accounting

Rådet för finansiell rapportering (RFR) – Council for Financial Reporting

Revisorsinspektionen (RI) – Swedish Inspectorate of Auditors

Srf Konsulterna (Srf)

Relevant Legislation

Annual Reports Act (1995:1554)

Auditors Act (2001:883)

Companies Act (2005:551)

EU Regulation (EC) No. 1606/2002 on the Application of International Accounting Standards

Regulation (EU) No. 537/2014 on Specific Requirements Regarding Statutory Audit of Public-Interest Entities

Relevant Publications

Accrual Accounting in Swedish Central Government – ESV

General Statement on the Importance of the Code of Ethics in Auditor Independence Assessments – RI