Document background
The Internal Audit Engagement Letter is a crucial document used to establish a professional relationship between an internal audit service provider and a client organization in Pakistan. It is typically required when an organization engages either an external firm or establishes an internal audit function to conduct systematic reviews of its operations, risk management, and internal controls. The letter must comply with Pakistani regulatory framework, including the Companies Act 2017, SECP requirements, and the Code of Corporate Governance 2019, while also adhering to international audit standards. This document outlines the scope of work, methodology, timelines, deliverables, and professional fees, serving as a reference point for both parties throughout the engagement. It's particularly important for listed companies in Pakistan, where internal audit functions are mandatory, and for organizations seeking to enhance their governance structures.
