Document background
The Internal Audit Engagement Letter is a critical governance document used in Philippine organizations to formally establish the internal audit function's mandate, scope, and responsibilities. It is typically issued at the commencement of new audit engagements or annually for ongoing internal audit functions. The document ensures compliance with Philippine regulatory requirements, including the Revised Corporation Code, SEC regulations, and professional standards set by the Philippine Institute of Internal Auditors. It outlines key aspects such as audit objectives, scope, methodology, reporting lines, and deliverables. This engagement letter is particularly important in the Philippine context where corporate governance requirements are increasingly stringent and organizations must demonstrate robust internal control frameworks. The document serves as a formal agreement between the internal audit function and the organization's governing body, typically the Board of Directors or Audit Committee.
