FSR - danske revisorer

Under the Danish Act on Approved Auditors and Audit Firms, the Danish Business Authority (DBA) is responsible for conducting quality assurance (QA) reviews in the jurisdiction.

FSR – danske revisorer continues to support the DBA in the implementation and continuous improvement of the mandatory QA review system for all statutory auditors, which is aligned with the requirements of Statement of Membership Obligations 1. FSR’s activities include providing technical input to the DBA on enhancements to the QA framework, supporting the training of QA inspectors, and delivering annual technical training programs for inspectors of the Danish audit oversight authority.

FSR also supports its members in complying with applicable auditing and quality management standards through technical guidance, newsletters, and training that address key issues and areas of weakness identified through QA review findings. This includes guidance on lessons learned from inspections and ongoing implementation support for the International Standards on Quality Management.

To protect the public interest, FSR’s internal regulations require members to disclose on its website and in annual financial statements where findings of non-compliance have resulted in referral to the Auditors’ Tribunal. FSR also takes membership actions, including exclusion, in cases involving severe sanctions or non-compliance with applicable ethical requirements.

FSR has supported members and regulators in implementing the International Standards on Quality Management (ISQM 1 and ISQM 2), which are now effective in the jurisdiction, and continues to maintain ongoing processes for training, guidance, and continuous improvement.

Current Status: Sustain

Under Act No. 617 of June 12, 2013, the State Authorized Public Accountant designation is reserved for statutory auditors. The Danish Business Authority, the Danish Financial Supervisory Authority, universities, and FSR – danske revisorer share responsibility for establishing and administering initial professional development requirements in the jurisdiction.

Candidates are required to hold a master’s degree, complete a minimum of three years of practical training, and pass a final professional competence examination administered by FSR under the supervision of the Danish Business Authority. FSR members are required to complete a minimum of 120 hours of continuing professional development over a rolling three-year period, and compliance is monitored and verified.

While not legally mandated, FSR reports that in practice all candidates intending to apply for approval as State Authorized Public Accountants enroll in its certification program. FSR also reports that the majority of statutory auditors fulfill their continuing professional development requirements through training and courses provided by FSR, although members may also satisfy these requirements through training programs offered by audit firms and other approved providers.

FSR continues to support the implementation of an International Education Standards-compliant framework through its focus on education, training, practical experience coordination, and continuing professional development. It maintains ongoing collaboration with universities, regulators, and other stakeholders to ensure that education and training requirements remain aligned with the International Education Standards in effect and monitors developments to support continuous improvement.

Current Status: Sustain

The Danish Act on Approved Auditors and Audit Firms and related executive orders require statutory audits to be conducted in accordance with generally accepted auditing practices. In practice, the auditing standards issued and translated by FSR – danske revisorer are applied in the jurisdiction.

Since 2010, Danish auditing standards have been aligned with the International Standards on Auditing as issued by the International Auditing and Assurance Standards Board, with standards becoming effective in Denmark on the same dates as promulgated internationally. FSR maintains an ongoing process to review, translate, and incorporate new and revised standards, including recent updates to the International Standards on Quality Management and related auditing standards.

FSR provides extensive implementation support to members through technical guidance, training programs, seminars, and regular updates on developments in auditing standards. Its Auditing Standards Committee remains actively engaged in reviewing and responding to International Auditing and Assurance Standards Board exposure drafts and in supporting awareness and implementation of new and revised standards among members and other stakeholders.

Current Status: Sustain

The Danish Act on Approved Auditors and Audit Firms authorizes the Danish Business Authority to establish ethical requirements for State Authorized Public Accountants. In practice, the ethical standards issued by FSR – danske revisorer are applied in the jurisdiction.

FSR has maintained an ongoing process to incorporate amendments to the International Code of Ethics for Professional Accountants (including International Independence Standards) and translated the 2018 Handbook for application by its members, including additional requirements necessary to comply with Danish legal and regulatory requirements.

FSR supports implementation and awareness of ethical requirements through translation activities, technical guidance, and continuing professional development courses. This has included translation of key amendments and delivery of member training to support effective application of the Code.

While FSR has established a strong framework and ongoing processes to support compliance with SMO 4, further work is required to confirm that the most current version of the Handbook in effect as of the time of the assessment has been fully incorporated and made effective in the jurisdiction. Accordingly, the assessment is updated to Review & Improve.

FSR is encouraged to continue prioritizing the timely incorporation and translation of the latest amendments to the Code, with a particular focus on reducing the implementation lag between issuance by the International Ethics Standards Board for Accountants and effective application in Denmark.

Current Status: Review & Improve

The Danish Ministry of Finance is responsible for establishing public sector accounting standards in Denmark and has not adopted International Public Sector Accounting Standards. There is currently no formal timeline for adoption.

While FSR – danske revisorer is not the public sector standard-setting authority, it continues to support the promotion of high-quality public sector financial reporting within the scope of its mandate. FSR participates in the Central Government Accounts Council, which monitors developments related to International Public Sector Accounting Standards and broader public sector reporting issues.

FSR also continues to engage in dialogue with key public sector stakeholders, including the Ministry of Finance and the Supreme Audit Institution, and participates in consultations and discussions led by the Public Sector Committee of Accountancy Europe.

In addition, FSR supports awareness and capacity building among members, students, and public authorities on best practices in public sector accounting and auditing.

Current Status: Sustain

In accordance with the Danish Act on Approved Auditors and Audit Firms, the Danish Business Authority established the Auditors’ Tribunal, which, together with FSR – danske revisorer, implements the investigative and disciplinary system in Denmark for State Authorized Public Accountants (statutory auditors).

FSR may refer cases involving statutory auditors to the Auditors’ Tribunal for investigation and, depending on the findings, has the authority to take membership-related disciplinary actions, including expulsion. Under the Act, FSR is also authorized to file complaints regarding professional misconduct, including in respect of non-members where relevant. In addition, FSR’s by-laws cover ethical behavior and compliance requirements for members who are not statutory auditors.

FSR continues to work closely with representatives of the Auditors’ Tribunal, the Danish Business Authority, and other relevant enforcement bodies to identify opportunities for improvement and to support the ongoing effectiveness of the investigative and disciplinary framework.

To support awareness and compliance, FSR provides members with guidance and resources on the investigative and disciplinary processes through its website and regularly communicates lessons learned from disciplinary decisions through member newsletters and technical updates.

Current Status: Sustain

The Danish Business Authority and the Danish Financial Supervisory Authority are the designated authorities responsible for establishing and overseeing the financial reporting framework in Denmark.

Listed companies are required to apply International Financial Reporting Standards as adopted by the European Union in their consolidated financial statements and, where applicable, in separate financial statements. The Danish Financial Supervisory Authority oversees financial reporting by financial institutions, including the application of the Danish Financial Statements Act and related supervisory directives.

Non-listed companies may elect to apply International Financial Reporting Standards or Danish accounting standards developed by FSR – danske revisorer’s Danish Accounting Standards Committee.

FSR maintains ongoing dialogue with the Danish Business Authority and the Danish Financial Supervisory Authority and continues to provide technical input on the endorsement and implementation of International Financial Reporting Standards in the jurisdiction. Its Danish Accounting Standards Committee provides technical guidance to members, supports implementation through publications and technical updates, and actively participates in the international standard-setting process through comments on exposure drafts and discussion papers issued by the International Accounting Standards Board and European Financial Reporting Advisory Group.

FSR also supports effective implementation through courses, conferences, and technical guidance on new and revised standards and interpretations, and continues to raise awareness of international developments affecting financial reporting.

Current Status: Sustain