In this section, Donnadieu & Associés, intend to provide useful and practical tools and informations in legal, accounting and financial domains.

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GUIDE OF EXTERNAL AUDIT OF CREDIT RISK OF MICROFINANCE SECTOR IN DEVELOPPING COUNTRIES

On several ways, microfinance is strongly different from traditional banking system : on the first stage, the credit process methodology is specific due to the lack of financial guaranty ; then financial information made available by the microfinance institutions is usually poor, especially for non-profit organizations ; the external financial support is also frequent among microfinance institutions due to low financial return ; in addition to structural specificities come those related to developing countries themselves, the lack of political and economical stability, the lack of infrastructure, and the weak legal and regulatory framework.

The external auditor is facing complex parameters which require strong and specific know-how based on strong technical skills and a global knowledge of the audited microfinance institutions’ political, economical and social environment.

This study is a practical guide which proposes tools and methodology in order to deal with the specific credit risk of microfinance institutions, which constitutes the principal cause of failure of the microfinance sector and the main focus of financial investors as well as regulatory authorities. Generally speaking, this guide’s ambition is to contribute to the improvement of the microfinance sector’s financial clearness, in order to improve also its sustainability and its long-term action by sensitizing all the actors on the key aspects of information system and internal control.

INTERNAL CONTROL SELF ASSESSMENT TOOL FOR INTERNATIONAL SOLIDARITY ORGANISATION

This tool serves three objectives:

• Identifying the main risk areas related to the internal process of an international solidarity organisation which are supposed to impact, directly or indirectly, the financial statements

• Proposing self assessment questionnaires in relation to the above risks

• Making recommendations in order for the organisation to control these risks

This tool is designed on a free use CD-Rom for any international solidarity organisation. All organisations are strongly encouraged to contact us to benefit from the CD Rom.