Guide

Microfinance Internal Audit: Toolkit and Resources

Understanding local standards, regulatory requirements, and the norms of internal audits of an MFI
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This toolkit provides an overview of best practices for a well-functioning internal audit department in an MFI. It focuses on operational risks, rather than financial risks or external risks, such as those related to regulation, competition, and the environment.

The toolkit assumes that an MFI’s board and governing bodies lead the risk management agenda of the MFI and effectively hold management accountable for the implementation of risk mitigation strategies. The toolkit and its annexes are designed for application and use by the internal audit managers and staff of an MFI. They are intended to:

  • Support the mission and objectives of an MFI;
  • Produce reliable financial statements;
  • Minimize operational risks;
  • Prevent fraud, error, and inefficiencies.