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The Internal Audit Engagement Letter is a crucial document used to formally establish and define the internal audit function's role within an organization operating under Irish jurisdiction. This document is typically implemented when setting up a new internal audit function, restructuring existing audit arrangements, or updating terms to reflect changes in regulatory requirements or organizational needs. The letter encompasses key elements required by Irish corporate law and regulatory frameworks, including the scope of audit services, reporting relationships, access to information, and compliance with professional standards. It serves as a reference point for both the internal audit function and organizational stakeholders, clearly delineating responsibilities, expectations, and deliverables while ensuring alignment with Irish corporate governance requirements and international audit standards.

1. Addressee and Date: Formal letter heading with recipient's name, title, organization, and date

2. Introduction: Opening paragraph establishing the purpose of the engagement letter and confirmation of the appointment

3. Scope of Internal Audit Services: Clear definition of the audit scope, objectives, and areas to be covered

4. Nature of Internal Audit Services: Description of the types of activities, reviews, and assessments to be performed

5. Internal Audit Responsibilities: Detailed outline of the internal audit team's responsibilities and deliverables

6. Management Responsibilities: Clarification of management's roles, including provision of information and implementation of recommendations

7. Reporting Structure: Description of reporting lines, including relationship with the Audit Committee and Board

8. Timeline and Resources: Expected duration, timing of audit activities, and resource allocation

9. Professional Standards: Confirmation of adherence to IIA standards and relevant professional guidelines

10. Confidentiality and Data Protection: Commitments regarding information security and GDPR compliance

11. Fees and Expenses: Details of any internal cost allocation or budgeting if applicable

12. Signature Block: Space for signatures of both parties to confirm agreement