Audit of banks and microfinance institutions in Kampala.
Financial institutions in Uganda work within a tiered regulatory framework, and each tier calls for a different audit focus.
We audit banks and microfinance institutions in Uganda in line with the tiered framework governed by the Bank of Uganda, the microfinance laws and regulations in force, and International Standards on Auditing (ISAs).
Our audit focus by tier
- Tier 1 & Tier 2
- Commercial banks and credit institutions regulated by the Bank of Uganda. We focus on solvency, loan portfolio quality, risk management and capital adequacy.
- Tier 3
- Microfinance deposit-taking institutions regulated by the Bank of Uganda. We focus on compliance with liquidity requirements, depositor protection and the health of the micro-lending portfolio.
- Tier 4
- SACCOs, non-deposit microfinance institutions and self-help groups, regulated under the Tier 4 Microfinance Institutions and Money Lenders Act and guidelines from ICPAU. We examine statutory reserves, anti-money laundering compliance and internal controls.
Key audit focus areas
- Loan portfolios & credit risk
- Testing the classification of non-performing loans, provisioning levels, and the security or group guarantees that back microfinance disbursements.
- Independence & tenure
- Auditor independence and partner tenure both affect the reliability of financial reporting, so we consider them when accepting and continuing an engagement.
- Internal audit functions
- Reviewing independent internal audit arrangements across branch networks and group-lending field operations, which helps to reduce client and asset attrition in Tier 4 entities.