Document background
The Forensic Audit Engagement Letter is a crucial document used when organizations require specialized investigative auditing services, typically in cases of suspected fraud, financial irregularities, or compliance violations. Under Belgian law, this document serves as the formal agreement between the audit firm and the client, establishing the framework for the investigation while ensuring compliance with Belgian corporate law, audit regulations, and professional standards. The letter outlines critical elements including scope of work, methodology, timelines, fee structures, and specific provisions for handling evidence and sensitive data. It's particularly important in the Belgian context due to specific regulatory requirements from the Belgian Institute of Registered Auditors (IBR-IRE) and the need to comply with both local and EU regulations, including GDPR. The document is typically initiated following board decisions, whistleblower reports, or regulatory requirements, and serves as the foundation for the entire forensic audit process.
