Regulatory Alerts2026-07-03
Added · Updated
Guidance on auditor's acceptance and continuance of audit engagements
The Financial Supervisory Authority of Norway has issued guidance replacing circular 6/2021, detailing its interpretation and practice of rules for auditors' acceptance and continuance of audit engagements for all supervised auditors and audit firms. Auditors must assess their own independence, competence, and capacity, alongside the audited entity's integrity and compliance, ensuring legal or regulatory breaches are rectified before engagement acceptance or lead to immediate resignation. Audit firms are required to establish robust quality management systems for these assessments, including clear policies, documentation, and follow-up procedures, with specific protocols for communication with previous auditors and conditions for resignation.