Is a statutory auditor required in Norway?

Many entrepreneurs planning to start a business in Norway wonder whether they will need to use the services of a financial auditor – and hopefully so, as it shows an intention to run a business in compliance with the law.

In Poland, the term biegły rewident is used, while in Norway the equivalent is simply auditor (revisor). Does every company in Norway have to appoint an auditor? The answer depends on the legal form of the business and the scale of its operations.

Below, we explain when the obligation to use an auditor arises for the two most common forms of business in Norway: sole proprietorship (enkeltpersonforetak – ENK) and limited liability company (aksjeselskap – AS).

What does an auditor do and what are they responsible for?

An auditor is an independent professional whose main role is to protect the interests of owners and other users of financial statements, such as banks, investors, and public authorities. An auditor does not keep the accounts – that is the job of a regnskapsfører (accountant). Instead, the auditor verifies whether the financial information presented by the company is accurate, compliant with Norwegian law, and correctly reported to the authorities.

Key responsibilities of an auditor include:

Audit of the annual financial statements
The auditor performs a statutory audit (lovfestet revisjon) and issues an audit report (revisjonsberetning), assessing whether the accounts give a true and fair view of the company’s financial position and whether applicable laws and regulations are followed.

Reporting to the board
The auditor must inform the board of directors (styret) in writing about material errors, weaknesses in internal controls, or breaches of the law, and monitor whether corrective actions are taken.

Confirmation of tax-related information
The auditor may sign or confirm selected documents (for example næringsspesifikasjon or documentation linked to the tax return / skattemelding), assuring the Norwegian Tax Administration (Skatteetaten) that the figures are correct and compliant.

Control of payroll and employer obligations
The auditor may review payroll systems, tax withholding (skattetrekk), and employer’s social security contributions (arbeidsgiveravgift) to identify potential irregularities.

Professional secrecy and duty to disclose
While bound by confidentiality, the auditor has a legal duty to disclose information to owners, the board, or authorities when required by law.

Civil liability
If errors or negligence by the auditor cause financial loss, both the auditor and the audit firm may be held jointly liable for damages.

Independence and professional skepticism
Auditors must act with integrity, objectivity, and due care, maintaining full independence from management. This independence is a key reason why audited financial statements are trusted.

Overall, auditors enhance the credibility of financial reporting and reduce the risk of errors, fraud, and disputes with tax authorities.

Audit requirement in AS (limited liability companies)

An aksjeselskap (AS) is the most common corporate form in Norway and corresponds broadly to a limited liability company. As a general rule, small AS companies may opt out of having an auditor. This is known as fravalg av revisjon (opt-out of audit). Norwegian law, however, sets clear thresholds defining when a company is considered “small”.

An AS may operate without an auditor if it meets all of the following conditions:

annual operating revenue (driftsinntekter) below NOK 7 million, and
total balance sheet assets below NOK 27 million, and
average number of full-time equivalent employees does not exceed 10.

If the company exceeds any one of these thresholds, an audit becomes mandatory. In practice, if a company exceeds a limit in one financial year (for example, revenue above NOK 7 million), the obligation to appoint an auditor usually applies from the following financial year.

A company that previously opted out of audit must then appoint a licensed auditor at a general meeting and report this to the Norwegian Register of Business Enterprises (Foretaksregisteret). If the company later falls below all thresholds again for subsequent years, it may opt out of audit once more by formally registering a new fravalg av revisjon.

When establishing a new AS, founders must already decide whether the company will have an auditor or opt out of audit during the registration process.

Even when there is no legal requirement, a company may voluntarily appoint an auditor – for example, to meet bank requirements or investor expectations. For small companies, however, this is optional.

Audit requirement in ENK (sole proprietorships)

An enkeltpersonforetak (ENK) generally has no obligation to use an auditor. In most cases, small sole proprietorships are not subject to full accounting obligations, and therefore not to audit requirements either.

Audit requirements for ENK only arise if the business grows large enough to be subject to statutory accounting obligations (regnskapsplikt). The thresholds for ENK differ from those applicable to AS companies.

In practice, an ENK may become subject to audit if it reaches a significant size, for example:

at least NOK 27 million in assets OR
at least 20 full-time equivalent employees OR
NOK 20–27 million in assets combined with revenues above NOK 7 million OR
10 or more full-time equivalent employees.

If an ENK meets one of these criteria, audit becomes mandatory. As with AS companies, if a threshold is exceeded in one year, the requirement to appoint an auditor typically applies from the next financial year.

If the business remains below these limits, there is generally no requirement for either full financial statements or audit.

Special cases

Regardless of size thresholds, certain types of businesses in Norway are always required to have an auditor. This applies in particular to entities supervised by Finanstilsynet, such as banks, insurance companies, and investment funds.

Pharmacies are also generally subject to mandatory audit.

In addition, legal practices (advokatvirksomhet) must appoint an auditor. Companies benefiting from the SkatteFUNN R&D tax incentive scheme must also obtain confirmation from an auditor in connection with reporting the deduction.

These are specific exceptions that usually do not affect most small, standard businesses, but they are important to be aware of.

Summary

In Norway, small businesses – both ENK and AS – can often operate without an auditor. The obligation to appoint an auditor generally arises only once statutory size thresholds are exceeded or when the business falls under special regulatory regimes (such as finance, pharmacies, legal services, or SkatteFUNN).

Understanding these rules allows entrepreneurs to plan growth more effectively, budget for potential audit costs, and ensure compliance with Norwegian law.

In addition to an auditor, choose a good accountant – welcome to us!

Article author: Marcin – marcin@efirma.no