Microfinance Audit: Internal & External Training Course

Microfinance Audit: Internal & External Training Course

Introduction

Effective auditing in microfinance institutions (MFIs) is critical to ensure financial integrity, regulatory compliance, and the sustainability of operations. Microfinance Audit: Internal & External Training Course equips participants with advanced knowledge and practical skills in both internal and external audit procedures, risk assessment, and financial statement evaluation. Participants will explore best practices, audit standards, and trending tools that enhance transparency, strengthen accountability, and safeguard institutional assets.

The course emphasizes hands-on learning, case studies, and real-world scenarios to build expertise in auditing credit, operational, and financial processes within MFIs. By integrating internal controls, risk management frameworks, and reporting techniques, participants will develop the ability to conduct comprehensive audits, identify gaps, and recommend actionable solutions that drive performance, trust, and compliance.

Course Objectives

1. Understand the principles and frameworks of microfinance auditing.
2. Develop proficiency in internal audit planning and execution.
3. Apply external audit methodologies aligned with regulatory standards.
4. Assess financial statements and operational records accurately.
5. Evaluate internal controls and risk management mechanisms.
6. Identify and mitigate audit risks in microfinance operations.
7. Utilize digital tools and technologies for auditing processes.
8. Perform portfolio, credit, and operational audits efficiently.
9. Ensure compliance with statutory and regulatory requirements.
10. Conduct forensic investigations and detect irregularities.
11. Report audit findings effectively to management and stakeholders.
12. Benchmark audit performance using trending KPIs.
13. Implement continuous improvement practices in auditing operations.

Organizational Benefits

• Enhanced transparency in microfinance operations
• Improved internal control mechanisms
• Reduced financial and operational risks
• Greater compliance with regulatory and statutory requirements
• Strengthened governance and accountability
• Optimized audit planning and execution
• Detection and prevention of fraud and irregularities
• Increased trust among clients, investors, and regulators
• Efficient utilization of audit technologies and digital tools
• Enhanced decision-making through actionable audit insights

Target Audiences

• Internal auditors of microfinance institutions
• External auditors and consultants in financial services
• Compliance and risk management officers
• Microfinance finance managers and accountants
• Portfolio managers and credit officers
• Senior management overseeing audit functions
• IT and audit system specialists
• Regulatory authority staff supervising MFIs

Course Duration: 10 days

Course Modules

Module 1: Introduction to Microfinance Audit

• Overview of microfinance institutions and operations
• Key audit principles and objectives
• Roles of internal and external auditors
• Audit standards and ethical considerations
• Emerging trends in microfinance auditing
• Case Study: Establishing audit frameworks in a small MFI

Module 2: Internal Audit Planning

• Audit planning processes and strategies
• Risk-based internal audit approach
• Preparing audit programs and schedules
• Stakeholder engagement in audit planning
• Resource allocation for effective audits
• Case Study: Internal audit planning in a regional MFI

Module 3: External Audit Methodologies

• External audit scope and objectives
• Compliance with statutory and regulatory requirements
• Coordination with internal audit teams
• External audit reporting frameworks
• Audit fieldwork execution strategies
• Case Study: Conducting an external audit for a microfinance cooperative

Module 4: Financial Statement Review

• Key financial statements in MFIs
• Techniques for analytical review and reconciliation
• Identifying material misstatements
• Evaluating financial performance indicators
• Detecting unusual transactions
• Case Study: Reviewing financial statements for an MFI branch

Module 5: Internal Controls Assessment

• Designing and evaluating internal controls
• Segregation of duties and authorization processes
• Monitoring and testing control effectiveness
• Control documentation and reporting
• Assessing operational and compliance controls
• Case Study: Strengthening internal controls in loan processing

Module 6: Risk Management in Microfinance

• Identifying operational, credit, and market risks
• Risk assessment frameworks for MFIs
• Integration of audit findings into risk mitigation
• Monitoring risk indicators and thresholds
• Reporting risk exposure to management
• Case Study: Risk assessment of a microloan portfolio

Module 7: Audit of Credit Operations

• Evaluating loan application and approval processes
• Assessing borrower eligibility and documentation
• Monitoring repayment schedules and delinquency
• Detecting irregular lending practices
• Compliance checks in credit operations
• Case Study: Credit portfolio audit for a community-based MFI

Module 8: Operational Audit Procedures

• Evaluating administrative and operational workflows
• Assessing staff performance and accountability
• Reviewing branch-level operations
• Audit of procurement and resource utilization
• Compliance with operational policies and standards
• Case Study: Operational audit of an MFI field office

Module 9: Forensic Audit and Fraud Detection

• Principles of forensic auditing
• Techniques to detect fraud and irregularities
• Investigative tools and evidence gathering
• Reporting suspected fraud to management
• Preventive controls to minimize fraud risks
• Case Study: Detecting misappropriation in microfinance cash operations

Module 10: Audit Reporting and Communication

• Structuring audit reports for management and boards
• Communicating findings clearly and effectively
• Presenting recommendations and corrective actions
• Follow-up on audit implementation plans
• Documentation and archival of audit evidence
• Case Study: Preparing a comprehensive audit report for the board

Module 11: Compliance Audit

• Regulatory frameworks applicable to MFIs
• Compliance assessment techniques
• Monitoring adherence to licensing and reporting standards
• Handling regulatory queries and inspections
• Documenting compliance audit findings
• Case Study: Regulatory compliance audit for a regional MFI network

Module 12: Digital Tools for Auditing

• Use of accounting and audit software
• Data analytics for audit testing
• Automation in audit procedures
• Dashboard creation for monitoring audit KPIs
• Enhancing accuracy through digital tools
• Case Study: Implementing digital audit tools in loan portfolio review

Module 13: Audit Performance Benchmarking

• Setting KPIs for internal and external audits
• Measuring audit efficiency and effectiveness
• Benchmarking against industry best practices
• Continuous improvement using audit metrics
• Feedback loops for auditors and management
• Case Study: Benchmarking audit performance in a multi-branch MFI

Module 14: Stakeholder Engagement in Auditing

• Engaging management and boards in audit processes
• Communicating audit scope and findings effectively
• Managing expectations of external regulators
• Coordinating with internal teams and departments
• Ensuring transparency in audit follow-up
• Case Study: Stakeholder engagement during a multi-site audit

Module 15: Continuous Improvement in Microfinance Audit

• Audit cycle review and enhancement
• Identifying lessons learned from audits
• Implementing recommendations and monitoring progress
• Capacity building for auditors and staff
• Sustaining audit quality and governance
• Case Study: Continuous improvement program for internal audits

Training Methodology

• Instructor-led presentations and conceptual briefings
• Hands-on exercises and audit simulation workshops
• Case study analysis with real-world microfinance scenarios
• Group discussions and peer collaboration
• Use of digital audit tools for practical exercises
• Feedback, assessment, and interactive Q&A sessions

Register as a group from 3 participants for a Discount

Send us an email: info@datastatresearch.org or call +254724527104 

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

 We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to DATASTAT CONSULTANCY LTD account, as indicated in the invoice so as to enable us prepare better for you.