Internal Audit Engagement Letter Template for Philippines

1. Letterhead and Date: Internal audit department/firm letterhead and date of the engagement letter

2. Addressee Details: Full name and title of the recipient (typically the Audit Committee Chair or Board of Directors)

3. Engagement Purpose: Clear statement of the purpose of the internal audit function and its role within the organization

4. Scope of Services: Detailed description of the internal audit services to be provided, including the departments/processes to be covered

5. Professional Standards: Reference to compliance with Philippine Standards on Auditing and IIA Standards

6. Authority and Access: Statement of the internal audit team's authority and right to access necessary information and personnel

7. Independence and Objectivity: Declaration of internal audit's independence and commitment to objectivity

8. Reporting Structure: Description of reporting lines and communication protocols

9. Deliverables: Outline of the reports and other outputs to be provided

10. Timeline: Expected duration and key milestones of the engagement

11. Resource Requirements: Specification of the resources needed to perform the engagement

12. Closing and Signatures: Formal closing, signature blocks for both parties

1. Appendix A - Audit Universe: List of all auditable areas and their risk rankings

2. Appendix B - Audit Timeline: Detailed schedule of audit activities and milestones

3. Appendix C - Resource Allocation: Breakdown of team members and time allocation

4. Appendix D - Reporting Templates: Standard formats for audit reports and communications

5. Appendix E - Key Contacts: List of key stakeholders and their contact information

6. Appendix F - Reference Documents: List of relevant policies, procedures, and standards that will guide the audit