External audit work and related work as statutory auditor.
Attestation of financial statements
External audit is to a large extent a legal requirement in
Norway, and is a regulated area. You will find
further information here on the statutory audit requirements in Norway.
Attestations to the Tax Authorities
The tax accounts are prepared by adjusting the financial statements for different measurement rules in the tax legislation. The enterprise's auditor is required by law to attest the accounts adjusted for taxation purposes, which are supplied with the client's tax return. The auditor must also certify that the system for reporting wages and withholding tax is functioning properly and attest the reported amounts on an annual basis.
Attestation of paid in share capital and changes in capital
It is required that the an auditor certifies that the capital has been paid within the time limits before a Private Limited Liability Company or a Public Limited Liability Company is registered. When capital is paid in cash, the certification can be made by a financial institution in stead.
When capital is paid in kind, the auditor must confirm the substance behind the book value. This is also the case in company mergers, however, no auditor is appointed as auditor of the merger as such. The auditor of the acquiring company is required to confirm that the assets of the company to be overtaken has a value equal to, or higher than, their book value.
Other specific attestations
Certain specific attestations are required in certain industries, e.g. in relation to government grants.
Tax advice - Representing clients in tax matters
A tax advisory service is in principle part of the general legal advisory service which is a monopoly for members of the legal profession. Generally speaking, this means that representation before the court, drafting of legal documents (such as registration of companies), and general legal advice are services which can only be rendered by lawyers.
However, public accountants are given the right to represent their clients (also non-audit clients) before the tax authorities and to assist in preparation of tax returns and other documents in connection with taxation.
Book-keeping The appointed external auditor can not audit an enterprise if the accounts of that enterprise are kept by his own practice or by a entity in which he has an economic interest. He may do the bookkeeping of other enterprises than his audit clients.
The Act on authorisation of book-keepers of 1993 regulates the activity of book-keeping so that a Government licence as authorised book-keeper is required in order to offer such services to the public. Public accountants will be authorised on application.
No formal qualifications are required for a person who is employed by a company to keep its accounts.
The management of an enterprise may chose to establish an internal audit function. There are no formal qualification requirements for internal auditors. In banking and insurance an internal audit function is required. The statutory auditor can not be the internal auditor.
Consultancy work is limited by auditors’ independence. Auditors who provide such services are required to follow the rules of professional conduct prescribed by Revisorforeningen. When the auditor performs consultancy services for his audit client, he must not engage in the decision process.
Public Sector Audits
The Municipalities Act allow appointing private public accountants as auditors of municipalities. The central government and central public administration are audited by “Riksrevisjonen”/Office of the Auditor General of Norway.
The State Enterprises Act of 1991 applies to those enterprises wholly owned by the State. Those enterprises must be audited by a private public accountant.