Document background
The Internal Audit Engagement Letter serves as a fundamental document in establishing and maintaining an effective internal audit function within organizations operating in Saudi Arabia. This document is typically used when setting up a new internal audit function, updating existing audit arrangements, or formalizing the relationship between the internal audit function and the organization's governing bodies. It incorporates requirements from Saudi Arabian regulations, including CMA Corporate Governance Regulations and SOCPA standards, while adhering to international internal auditing standards. The letter defines crucial elements such as scope, authority, responsibilities, reporting lines, and resource allocation, ensuring clarity and alignment with both local regulatory requirements and organizational objectives. It forms the basis for internal audit activities and helps demonstrate compliance with corporate governance requirements in the Saudi Arabian business environment.
