The toolkit provides an overview of internal control systems, including the control environment, the accounting system, and special control procedures. Concepts of the risk management feedback loop are discussed, and activities and tools provided to help MFI managers identify their operational risks and take deliberate steps in managing them. The Internal Audit function encompasses the detective controls of the risk management strategy and is part and parcel of the internal control system. Internal audits conduct tests, observations and analysis to determine whether policies and procedures are being followed, the impact of non- compliance, whether financial reports are reliable, and whether there are other risks that threaten the strength and viability of the institution.
For a quick overview, do read through the toolkit summary