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Lao microfinance units to undergo external, internal audits
Microfinance institutions that are authorised by the Bank of the Lao PDR (BOL) will have both internal and external audits this year, the central bank said yesterday.
Many such units are registered with BOL, which has so far authorised 88 microfinance bodies to operate in Laos, Director General of the Financial Institution Supervision Department Dr Akhom Praseuth said.
“This year we will audit only microfinance institutions in Vientiane,” he said.
Microfinance units in the provinces are not included in the plan for this year, and may be audited next year or in the following years.
Dr Akhom told the Vientiane Times that last y ear microfinance units were audited only by BOL, but this year they will undergo both internal and external audits.
The use of external audit and consulting firms to review the work of these institutions doesn't mean that BOL is looking to catch out wrongdoers or find weaknesses, but rather to help microfinance units improve their working methods, he said.
Good auditing will ensure microfinance bodies operate according to internal standards and procedures and in line with contractual obligations. Reviews can improve operations and help to prevent the waste of materials and labour.
The BOL will audit the units first and then the outside audit and consulting firms will do another check. The examinations conducted by the outside auditors will comply with the rules of the BOL.
The central bank has selected 16 audit and consulting firms to carry out the work.
The BOL and the United Nations Capital Development Fund are running a course on external auditing for the microfinance sector in Vientiane from March 19-30.
There are many audit and consulting firms in Laos but Dr Akhom said not all will be invited to attend the training course because the focus will be on quality.
A specific audit provides a quality service whereby an external audit is primarily conducted by professional accountants or other individuals from a recognised company.
vientiane times
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