Norwich forward Kyle Lafferty had a great chance to give Northern Ireland the lead heading into half time but his header looped over both the on-rushing goalkeeper and the bar.
The Faroes' goalscorer Edmundsson was then sent off in the second half, earning a second booking after a late challenge on Norwood and left the home side with 10 men for the final 25 minutes.
Northern Ireland would punish that mistake quickly, with McAuley netting his second moments afterwards by nodding home another free kick from close range.
Lafferty made it three with 15 minutes remaining, with substitute Josh Magennis pulling the ball back for the 27-year-old, who had to battle for the ball but managed to squeeze his shot into the bottom corner from a few yards out.
The result sees Northern Ireland edge ever closer to qualifying for the European Championships, and they face third-placed Hungary at Windsor Park on Monday evening when a victory would guarantee a plane ticket to France next year.