Statutory Audit Obligation

According to the Act all foreign enterprises that are obliged to keep accounts pursuant to the Accounting Act and have revenue exceeding NOK 5 million, will have a statutory obligation to have a Norwegian auditor.

Enterprises which the Central Office for Foreign Tax Affairs have exempted from following the Accounting Act Chapter 3-7 are also exempted from the obligation to engage an auditor.

The auditor must give his/her attestation of filing of the tax returns and the correctness of the salary reports to the tax authorities.

Legal entities subject to statutory audit
The following entities are always subject to statutory audit, regardless the annual turnover and other variables: 

•  All limited companies unless in companies where the board of directors has decided not to appoint one.

  The following conditions must be fulfilled if the board of directors has decided not to appoint an auditor in the limited company:
  

   

  The annual turnover is NOK 5 million or less

  The total balance sheet is less than NOK 20 million

  The average number of employees not exceed 10 man labour year
  

   

  Parent companies in a corporation will always be obliged to appoint an auditor.
  

• All public limited companies.
• Unlimited companies (ANS and DA) and limited partnerships (KS) with more than 5 partners.
• Unlimited companies (ANS and DA) where all partners are legal entities with limited liability (AS and ASA).
• Limited partnerships (KS) where the complementary (the partner with an unlimited liability) is a legal entity whose all partners have limited personal liability.
• Enterprises obliged to produce consolidated accounts at the concern level.

In addition, the following entities are subject to audit, given the conditions listed:

• Branches of foreign joint stock companies if the turnover exceeds NOK 5 million, exclusive of VAT. 
• Partnerships if the turnover exceeds NOK 5 million or there are more than 5 partners. Limited liability partnerships, where the general partner is a legal entity with limited liability, are also subject to statutory audit. 
• Self-employed businesses if their assets exceed NOK 20 million or if they have more than 20 employees.

Note that for entities where the audit obligation is linked to the turnover, the obligation is invoked for the year following the financial year when the limit was exceeded. The list above does not explicitly list the exceptions. If in doubt, contact a licensed auditor or the Narvik Business Hotline (800 33 840).