The Supervisory Board
The Supervisory Board of Public Accountants, Revisorsnämnden (RN), is the Government Office responsible for the examination of applicants to the profession and for the supervision of menbers of the profession. RN is financed by application fees and annual fees and positioned under the Ministry of Justice. The fees are ordained by the Swedish Government.

The educational system in Sweden
The educational system in Sweden consists of grundskola (primary education, 9-year compulsory school), gymnasium (secondary education, 3-year upper secondary school) and högskola/universitet (tertiary education). The basic requirement for university entrance is completion of primary and secondary education. In practice, however, it is almost always necessary for candidates to meet more specific course admission requirements. There is a certain quota-based intake for "mature" students. Students who apply for admission within such quotas can claim credit for working experience. There is also a national university aptitude test (högskoleprovet) which applicants can sit in order to obtain the right of admission or to improve the scores that they have obtained from secondary education.

In order to obtain an academic degree, a student must collect credits from several courses specified in the syllabus for the particular degree. Some of the courses are compulsory while others are elective. The credits are measured in points (poäng). At the Stockholm School of Economics, the points are called study units (studieenheter), but for all practical purposes, one study unit equals one point. Twenty points corresponds to one academic term which is half of an academic year of full-time study.

The basic university degrees are the bachelor´s degree, (kandidatexamen) and the master´s degree (magisterexamen). The bachelor´s degree comprises at least 120 points. The master´s degree comprises at least 160 points. The bachelor´s degree may include more than 120 points but the additional points may be spread over several subjects. The master´s degree requires in-depth, scientific studies in one selected subject.

As will be shown below, the requirements for qualification as an authorised public accountant or an approved public accountant include both academic studies and a period of practical training. There are no formal conditions for acceptance to practical training, and "students" in practical training are not centrally registered. The policy for acceptance differs between the various accounting firms. Often an individual is expected to fulfil the theoretical requirements for qualification before he or she is employed by a firm, but cases where a person is accepted for practical training and continues the theoretical studies in parallel are not uncommon.

There is no minimum age, but although practical training may begin before the completion of the theoretical studies, individuals who begin their practical training are seldom younger than 23 or 24.

Approved public accountants (godkända revisorer) and authorised public accountants (auktoriserade revisorer) are qualified to carry out statutory audits for all companies. Approved public accountants who qualified under the previous legislation may carry out statutory audits only for non-listed companies with less than 200 employees and net assets of less than approximately 39.7 million Swedish kronor.

Requirements for qualification - approved public accountant
A candidate who wishes to qualify as an approved public accountant (godkänd revisor) has to fulfil the requirements of:

• Practising the audit profession.
• Being a resident of Sweden or another EEA country. The Supervisory Board of Public Accountants may, if there are particular grounds, grant an approved public accountant a temporary right to reside in a non-EEA country.
• Being free from such restrictions in Sweden as bankruptcy, trade prohibition and consultancy prohibition, and from similar restrictions in other countries.
• Having completed an academic bachelor´s degree of 120 points with a focus on business administration; or having completed another similar course of study. There is a list of compulsory subjects in the Auditors Ordinance, which is in principle based on the list in the Eighth EC Directive, Article 6. The requirements are specified in the Auditors Regulations.
  Having had three years of practical training under the supervision of an authorised public accountant or an approved public accountant, including the audit of annual accounts of companies and groups of companies or similar financial statements. The Auditors Regulations provide more guidance.
• Passing the examination of professional competence as approved public accountant (revisorsexamen). The examination of professional competence as approved public accountant shall ensure the necessary level of theoretical knowledge (to the extent that this does not follow from the academic degree) and the ability to apply the knowledge in practice. The Supervisory Board of Public Accountants will arrange examination sittings twice a year, in June (provided that there are at least 20 applicants) and November. Venues, dates and examination fees are published annually in January.
• Being fit and proper to practice the audit profession.

• The candidate must have passed
  – an academic master´s degree of 160 points focusing on economic subjects, or
  – an academic bachelor´s degree with the same content as that required for qualification as approved public accountant but expanded to 160 points, or
  – another academic education on an equal level
• In addition to the three years required for qualification as approved public accountant the candidate must have another two years of practical experience. The additional two years must be supervised by an authorised public accountant and must include qualified assistance in audits that offer particular difficulties due to the size of the enterprise or for other reasons.
• The candidate must pass the examination of professional competence as authorised public accountant (högre revisorsexamen) arranged by the Supervisory Board of Public Accountants on the same occasions as the examination of professional competence as approved public accountant.

The rules contain the following guidelines for the courses leading to the required points.

Business administration: The studies shall provide knowledge of economic theories and methods and of areas of particular importance to accounting and auditing. Studies in accounting, auditing, finance, financial control and organisation shall have priority. The studies in auditing shall provide knowledge of the main principles and goals of auditing and of the auditor´s role, mission and responsibility. At least 10 points on the level above 40 points (that is advanced studies based on at least two previous terms of basic studies of business administration) shall consist of courses in external accounting.

Law: The studies shall provide knowledge of the structure of the legal system, of the methods of jurisprudence, and of laws of importance to the accountancy profession.
Commercial law: Studies shall cover at least 20 points. Company law, general business law, financial affairs law and insolvency law shall have priority.

Tax law: Studies shall cover at least 10 points. Corporate income tax shall have priority. The subject shall also include other taxes and charges connected to enterprises, such as VAT and employers´ contributions.

Other compulsory subjects: The subjects may be integrated with other subjects. At least one of the subjects of computer science, economics, statistics and mathematics must comprise at least 10 points. The computer science studies shall prioritise IT and computer systems for financial control, accounting and auditing. The problems of computer security and control shall be included.

The same requirements apply to a candidate for qualification as authorised public accountant, but an additional 40 points of theoretical studies are necessary. The candidate may earn those points in any academic subject, even subjects with no relation at all to the accountancy profession.

Detailed rules for the practical training
The Supervisory Board of Public Accountants has also specified the requirements with regard to the practical training needed for qualification. The training for qualification as approved public accountant shall consist of at least three years of full-time work, defined as at least 1,600 working hours a year. Part-time work is, of course, possible, recalculating the number of years on a pro rata basis. On the other hand, the work must be conducted over a period of at least three years, even if overtime hours mean that the total sum of 4,800 hours is reached earlier. There shall be a formal training programme, supervised by an approved public accountant or an authorised public accountant. The programme shall cover planning, testing and reporting. Part of the training shall include special investigations. The practical training should help trainees understand the importance of the auditor´s professional judgement and ethics. At least 1,500 hours of the total training shall be spent on audit assignments, and more than half of that training shall relate to the audit of limited companies.

The training for the qualification as authorised public accountant shall consist of at least three years of training in accordance with the requirements for the qualification as approved public accountant. Another two years of full-time training, under the supervision of an authorised public accountant shall include at least 1,000 hours of work on audit assignments. At least 500 hours of the audit work shall consist of qualified assistance on audits that are considered difficult due to the size of the client or for other reasons.

A joint working party of FAR and SRS has issued guidelines for the practical application of the regulations and prepared examples of training programmes for candidates to approval and authorisation.

Requirements for qualification - public accounting firms
An accounting firm may be appointed auditor of a client company in the same way as an individual public accountant. For this purpose, the firm must qualify as a registered public accounting firm (registrerat revisionsbolag). The qualification is available to limited companies and partnerships. To qualify as a registered public accounting firm, a firm has to satisfy the following requirements:

• The firm must provide audit services.
• The firm must not be bankrupt or in liquidation.
• The firm must include a clause in its articles of association or the partners´ agreement that the firm may not carry on other business than auditing and compatible activities.
• In the case of a partnership, the articles of partnership must include a clause stipulating that all partners must be authorised public accountants or approved public accountants.
• In the case of a limited company, the articles of association must include a clause stipulating that the managing director and at least three-quarters of the members of the board of directors and three-quarters of their deputies must be authorised public accountants or approved public accountants, the board of directors not forming a quorum unless authorised public accountants and approved public accountants are in the majority of those present.
• At least three-quarters of the shares of a limited company with at least three-quarters of the voting power must be held by authorised public accountants or approved public accountants. The remaining shares must be held by individuals who are active in the firm.

The rule that the holders of the "free" quota of a quarter of the shares must be active in the firm was intended to bar passive capital investors from ownership that might impede the independence of the firm. The consequence that foreign professional accountants are also barred was probably not intended. The authorisation of the Supervisory Board of Public Accountants to grant exemptions includes this rule.

If a registrered public accounting firm is appointed auditor, the firm shall name an individual auditor in charge of the client. In cases where individual appointed auditors must be authorised public accountants, the auditor in charge must be an authorised public accountant. In other cases, he or she must be an authorised public accountant or an approved public accountant.

General rules
All qualifications are valid for five years. A candidate who applies for renewal of the qualification has to demonstrate that he or she still satisfies the general requirements but there is, of course, no need for a new examination of professional competence as approved public accountant or authorised public accountant. The Supervisory Board of Public Accountants is financed by application fees (2,000 Swedish kronor per application), annual fees (3,800 Swedish kronor per year), and examination fees (16,000 Swedish kronor per candidate). The Supervisory Board of Public Accountants maintains a public register of all authorised public accountants, approved public accountants and registered public accounting firms.

An authorised public accountant or approved public accountant may practise as a single practitioner, or as a shareholder in a limited company or partner in a partnership, provided that the enterprise does not carry out activities that are incompatible with professional audit work. He or she may also be an employee of another authorised public accountant or approved public accountant or of a limited company or partnership. If the limited company or partnership is not a registered public accounting firm, only authorised public accountants and approved public accountants may be partners/shareholders, members of the board or managing director. In a registered public accounting firm under the legal form of limited company individuals who are not authorised public accountants or approved public accountants may participate to a limited extent in the capacities mentioned, see above.

The Supervisory Board of Public Accountants may allow an authorised public accountant or approved public accountant who practises in Sweden to practise in another EEA state under other legal forms than those mentioned. If there are particular grounds the Supervisory Board of Public Accountants may also grant exemptions from the rules on employment.

An auditor´s activities are subject to restrictions related to compability and independence based on the principles developed by FEE and the EU Committee for auditing.

If conditions change so that an authorised public accountant or an approved public accountant fails to satisfy the requirements he or she must inform the Supervisory Board of Public Accountants, which will reconsider the qualification.

Appeal
Decisions by the Supervisory Board of Public Accountants that are related to the Auditors Act can be appealed against. The appeal shall be filed with the Stockholm County Administrative Court (Länsrätten i Stockholm). Appeals against decisions by this court can be filed with the Stockholm Administrative Court of Appeal (Kammarrätten i Stockholm) subject to a review dispensation. Appeals against examinations and aptitude tests are not allowed.