Microfinance Internal Audit: Toolkit and Resources

This toolkit provides an overview of best practices for a well-functioning internal audit department in a microfinance institution (MFI). It focuses on operational risks, rather than external risks (e.g., those related to regulation, competition, and the environment) or financial risks (e.g., those related to interest rates, foreign exchange rates, and liquidity). 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.