tiktok³ÉÈË°æ

The Internal Audit Engagement Letter is a crucial document used when establishing or renewing internal audit services within an organization in Nigeria. It serves as the formal agreement between the organization's governing body (typically the Board or Audit Committee) and the internal audit function, whether in-house or outsourced. The document must comply with Nigerian legislation, including CAMA 2020 and Financial Reporting Council requirements, while adhering to International Internal Audit Standards. It outlines the scope of work, reporting lines, access rights, and deliverables expected from the internal audit function. This document is particularly important in the Nigerian business context, where strong corporate governance and internal controls are increasingly emphasized by regulators.

1. Letter Header: Professional letterhead, date, reference number, and addressee details

2. Introduction: Opening paragraph confirming the engagement and expressing appreciation for being selected to provide internal audit services

3. Engagement Scope: Detailed description of the internal audit services to be provided, including specific areas, departments, or processes to be reviewed

4. Audit Objectives: Clear statement of the objectives of the internal audit engagement, aligned with organizational goals and regulatory requirements

5. Professional Standards: Reference to compliance with IIA standards, ICAN requirements, and relevant Nigerian regulations

6. Methodology: Overview of the audit approach and methodology to be employed

7. Deliverables: Description of reports and other outputs to be provided during and after the audit

8. Timeline: Proposed schedule for the audit engagement, including key milestones and reporting dates

9. Team Structure: Introduction of key team members and their roles in the engagement

10. Fees and Payment Terms: Details of professional fees, payment schedule, and any additional costs

11. Confidentiality: Statement regarding confidentiality obligations and handling of sensitive information

12. Independence Statement: Declaration of independence and objectivity in conducting the internal audit

13. Closing: Request for acknowledgment and acceptance of the terms, signature blocks for both parties