Normally, small sole proprietorships do not have auditing obligations. An auditing obligation begins only when
- the turnover exceeds NOK 7 million,
- the balance sheet total is NOK 27 million or more, or
- the average number of employees amount 10 full-time equivalents or more
The auditing obligation enters into force the year after the business is liable to be audited.
Some industries have an auditing obligation through special regulations, such as law practices. Sole proprietorships that are subject to supervision from the Financial Supervisory Authority are liable to be audited, as well.
When is audit no longer a requirement?
If the business is subject to be audited, the operating revenues must be beneath the limit for two consecutive years before the auditing obligation expires. The auditing obligation ceases to apply from the third year.