Revisorslag

Revisorslag is a legal term used in Sweden and some Nordic jurisdictions to describe a specific type of reactionary audit action taken by an appointed financial auditor (revisor). It refers to the auditor’s decision to issue a “significant deficiency” notice or to recommend a penalty when substantial discrepancies are discovered during an audit of a company’s financial statements. The word literally translates to “auditor’s blow” and reflects the impact such a notice can have on a company’s reputation and its ability to obtain financing.

Unlike a routine audit opinion, a revisorslag can trigger immediate remedial action. When a revisorslag is issued, the company is required to correct the identified issues and may be forced to restate audited figures or comply with additional controls before a primary audit opinion can be issued. The decision to issue a revisorslag is governed by the Swedish Auditing Act and the Swedish Accounting Act, which set strict criteria for when a auditor may recommend such a punitive measure.

In practice revisorslag is most commonly applied in cases of material misstatement, lack of internal controls, or when a company fails to provide adequate documentation. It is a powerful tool that encourages corporate governance, discourages fraud, and protects shareholders and creditors. The concept has been adopted in several Nordic countries, albeit under different names.

Revisorslag has become a topic of discussion in corporate governance literature, with scholars debating its effectiveness in balancing audit independence and stakeholder protection. The practice highlights the critical role of auditors in maintaining transparency within corporate financial reporting.