The Financial Supervisory Authority of Norway imposed a NOK 500,000 administrative fine on ES Revisjon after finding serious breaches of audit law in its audits of four companies. Across all four engagements, auditors failed to assess and address fraud risks adequately, apply sufficient professional skepticism and obtain sufficient appropriate audit evidence. Three engagements also contained serious deficiencies in the audit of revenue. The authority found that audit procedures were often technical and lacked substance, including insufficient testing of management override, unrecorded revenue and unusual transactions. ES Revisjon had also failed over several years to conduct satisfactory cyclical engagement reviews, document identified weaknesses and carry out root cause analysis and corrective action. One engagement contained additional deficiencies involving an unaudited cash flow statement and an incomplete audit report. ES Revisjon had begun improving its audit practices following an external review in 2025. Based on improvements in its 2025 audit work, the authority decided not to withdraw the approvals of the two responsible engagement partners, but will assess the firm’s remediation in future supervisory work.
Financial Supervisory Authority of Norway fines ES Revisjon NOK 500,000 for serious audit law breaches
The Financial Supervisory Authority of Norway fined ES Revisjon NOK 500,000 for serious audit law breaches across four engagements. The firm failed to address fraud and revenue risks adequately, apply sufficient professional skepticism and obtain appropriate audit evidence. Its cyclical engagement reviews had also been deficient for several years.