Audit obligation

Auditing is an independent control and review of the accounts. If you are required to audit, you must have a registered or state-authorized accountant to carry out this check. The auditor cannot have an affiliation with the company in addition to being an auditor. After the review, the auditor shall prepare an audit report to be submitted together with the annual accounts. If the auditor has comments, it must appear in this report.

Whether you have audit obligations or not depends on the type of company and the size of the company. The following companies are required to audit:

• All limited companies, but you can opt out of revision if;
  • operating revenues are less than NOK 7 million, and
  • the balance sheet is below NOK 27 million, and
  • the average number of employees is less than 10 man-years
• In order for a joint-stock company which is a parent company in a group to be able to choose an audit, the group as a whole must be below the above mentioned values
   
• General partnership companies (ANS, DA, etc.) who have;
  • NOK 7 million or more in operating income, or
  • more participants than 10, or
  • all participants are legal persons and have assets in the balance sheet for more than NOK 27 million or the average number of employees constitutes more than 10 man-year
• Sole proprietorship with a turnover of more than NOK 7 million and one of these assumptions in addition is fulfilled;
  • assets worth more than NOK 27 million, or
  • the number of employees who on average make up more than 10 man-years
• Foreign Enterprises (NUF) which is taxable to Norway and has NOK 7 million or more in operating revenues
• Cooperative (SA) 
  • sales revenue of more than NOK 7 million
  • balance sheet showing assets of more than NOK 23 million, or
  • average number of employees of more than 10 full-time equivalents
• Others who have separate accounting obligations

If no state-authorized accountant has been selected in the formation document, the annual accounts shall not be revised.

When the operating income, balance sheet or man-years exceed the limit, the audit obligation commences from the following year.

In the case of an opt out of auditing, the previous annual financial statements are used as the basis for the assessment. If the annual accounts show that the company is below the limits, the general meeting may decide that the annual accounts shall not be audited and the company may discharge the state-authorized accountant. An opt out of audit is reported via Altinn on the form Coordinated registration, and it is valid as soon as it is registered in the Register of Business Enterprises.

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