FAR

The Revisorsinspektionen (RI) – Swedish Inspectorate of Auditors is responsible for quality assurance (QA) reviews for public interest entities (PIEs), and the FAR conducts QA reviews for non-PIEs, under the supervision of the RI. The FAR reports that the QA system is aligned with SMO 1 best practices.

RI's QA review system has been operational since 2003 and FAR's QA review system has been operational since 2009. FAR reports the final decisions from these reviews to RI twice a year.

In addition, FAR reported that it is established a QA review system for its members that are authorized accounting consultants (AAC), authorized tax advisors (ATA), and authorized payroll consultants (APC). FAR carries out reviews on a six-year cycle. Unsatisfactory results are reported to FAR's disciplinary board.

The FAR provides its members with guidance on establishing and maintaining quality management systems. Seminars are also provided to help members overcome challenges with quality management systems and QA reviews.

The FAR has demonstrated an ongoing process to maintain its fulfillment of the SMO 1 obligations and is committed to continuous improvement.

Current Status: Sustain

Responsibility for initial and continuing professional development (IPD and CPD, respectively) is shared in Sweden. The Auditors Act establishes the IPD and CPD requirements to become a statutory auditor.

As a voluntary professional accountancy organization, FAR sets and implements educational requirements for members who join the institute, including authorized public accountants and approved public accountants (statutory auditors), and other professional accountants in public practice, such as authorized accounting consultants, authorized tax consultants and authorized public consultants.

As reported by FAR, all the requirements leading to its professional designations comply with the latest International Education Standard (IES). FAR has set CPD obligations that align with the IES requirements whereby members are required to complete at least 120 hours of relevant CPD within a three-year period (minimum of 20 hours per year). FAR monitors CPD through quality control reviews.

FAR supports its members' fulfillment of CPD requirements by providing them with a planner on its website and ample training opportunities throughout the year.

FAR has demonstrated an ongoing process to maintain its fulfillment of the SMO 2 obligations and is committed to continuous improvement.

Current Status: Sustain

In line with the Auditors Act of 2001 (as amended 2018), FAR is responsible for issuing and translating ISA and states that it publishes them as they enter into force for application in the jurisdiction. Revisorsinspektionen (RI) – the Swedish Inspectorate of Auditors — in turn has the explicit mandate to interpret and evaluate the recommendations and pronouncements issued by FAR and thus determine "good auditing practice." The ultimate responsibility for determining "god revisionssed" lies with the courts of law. FAR reports that standards in the 2021 Handbook have been adopted, except for ISAE 3400, ISAE 3410 and ISRS 4410.

FAR reports that ISA are routinely translated and issued before the date of entry into force stipulated by IAASB.

FAR indicates that it supports and monitors members' implementation of ISA through reviews and by offering various training courses. Lastly, FAR provides comments to exposure drafts issued by the IAASB as part of sharing its perspective at the international standard-setting level.

FAR has demonstrated an ongoing process to maintain its fulfillment of the SMO 3 obligations and is committed to continuous improvement.

Current Status: Sustain

In Sweden, the Auditors Act of 2001 (as amended 2018) mandates all authorized public accountants and approved public accountants (statutory auditors) and audit firms to be subject to principles of professional ethics. In line with the Auditors Act, FAR translates and issues ethical standards. The Revisorsinspektionen (RI) – the Swedish Inspectorate of Auditors – interprets the standards for application by authorized public accountants. FAR adopts the latest version of the IESBA Code of Ethics on an ongoing basis, with the exact effective dates set by the IESBA. RI has subsequently endorsed the standards.

It also maintains an ongoing process to monitor amendments to the IESBA Code of Ethics to update its members on any changes.

FAR monitors its members' compliance with the Code through inspections. To support its members' understanding of and adherence to the Code, FAR offers continuing professional development courses, journal articles, and newsletters alongside an Ethics toolbox with guidance materials on its website.

Lastly, FAR states it provides comments to exposure drafts issued by IESBA as part of sharing its perspective at the international standard-setting level.

FAR has demonstrated an ongoing process to maintain its fulfillment of the SMO 4 obligations and is committed to continuous improvement.

Current Status: Sustain

The Rådet för Kommunal redovisning – accounting standards board for local government and the Ekonomistyrningsverket (ESV) – the Swedish national financial management authority for the central government – set public sector accounting standards in Sweden. Public sector entities are using national accrual standards with reference to IPSAS.

FAR has no direct responsibility for adopting public sector accounting standards in the jurisdiction. In accordance with SMO 5, FAR indicates that it uses its best endeavors to promote the adoption of IPSAS to the government of Sweden.

Current Status: Sustain

In Sweden, the Revisorsinspektionen (RI) – the Swedish Inspectorate of Auditors – has the authority to establish an investigative and disciplinary (I&D) system for authorized public accountants and approved public accountants (both considered statutory auditors). Accordingly, the RI has implemented an I&D system that is aligned with the best practices of SMO 6.

FAR has responsibility for the enforcement of its members that represent other segments of the profession. FAR has its disciplinary committee to deal with cases that do not fall under the RI's jurisdiction and publishes its decisions on its website. FAR assessed the I&D processes in 2018 and identified minor gaps – mainly not having an information-based approach to initiate investigations.

FAR developed a set of guiding principles available on the website to support its members' awareness and understanding of the system.

FAR is encouraged to consider incorporating an information-based approach to investigations – as identified in the self-assessment – which represents a global best practice in enforcement mechanisms.

Current Status: Review & Improve

Sweden has adopted the European IAS Regulation that defines public interest entities as listed companies, credit institutions, and insurance companies. These companies must use EU-endorsed IFRS. All other companies can apply the national accounting standard, BFNAR 2012:1 (K3), based on IFRS for SMEs. Small companies may choose to use national accounting standards, BFNAR 2016:10, also developed by BFN, or to apply the K3, developed by the Bokföringsnämnden (BFN) – Swedish Accounting Standards Board.

While FAR is not directly responsible for setting accounting standards in Sweden, it provides its members with education, training, and guidelines to support the implementation of adopted standards.

In addition to supporting its members, FAR indicates it is closely collaborating with the accounting standards board, BFN. For example, it supports establishing an ongoing process to incorporate new and amended IFRS at the jurisdiction level. It also assists with translations of the standards and exposure drafts. FAR published the EU Commission's official translation of the EU-endorsed IFRS.

FAR also states it engages with the BFN to develop an accounting framework that aligns as closely as possible with the IFRS for Small- and Medium-sized Entities. Lastly, FAR indicates that it collaborates with the BFN to participate in the international standard-setting process by providing comments on exposure drafts and other IASB pronouncements.

FAR has demonstrated an ongoing process to maintain its fulfillment of the SMO 7 obligations and is committed to continuous improvement.

Current Status: Sustain