Regulatory Alerts2024-09-12
Appointment of External Auditor of a Microfinance Institution
The National Bank of Ethiopia issued Directive No. MFI/37/2024 to standardize the appointment and oversight of external auditors for all licensed microfinance institutions in Ethiopia. The directive mandates a competitive bidding process for auditor selection while establishing strict eligibility, independence, and IFRS competency requirements for audit firms and their teams. It further outlines comprehensive auditor responsibilities, board oversight duties, mandatory NBE approval within fifteen working days, and strict reporting timelines alongside penalties for non-compliance.
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