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The Internal Audit Engagement Letter is a crucial document used in Belgian corporate governance to formally establish the framework for internal audit activities within an organization. It is typically issued at the commencement of a new audit engagement or when there is a significant change in audit scope or responsibilities. The letter outlines the purpose, scope, methodology, and expected outcomes of the internal audit function, ensuring alignment with Belgian corporate law, EU regulations, and international audit standards. This document is particularly important in Belgium, where corporate governance regulations emphasize strong internal control systems and transparent reporting structures. The engagement letter serves as a reference point for all stakeholders, defining roles, responsibilities, and expectations while ensuring compliance with local regulatory requirements and professional standards.

1. Letterhead and Date: Professional letterhead including the internal audit department details and date of the letter

2. Addressee: Specific recipient(s) of the letter, typically the Audit Committee Chair or Board of Directors

3. Introduction: Brief introduction stating the purpose of the letter and context of the internal audit engagement

4. Scope of Services: Detailed description of the internal audit activities, areas to be reviewed, and the time period covered

5. Audit Objectives: Clear statement of the objectives and expected outcomes of the internal audit engagement

6. Professional Standards: Reference to IIA Standards and Belgian regulatory requirements being followed

7. Methodology: Overview of the audit approach and procedures to be used

8. Deliverables: Description of reports and other outputs to be provided

9. Timeline: Expected duration and key milestones of the audit engagement

10. Access and Cooperation: Requirements for access to information, personnel, and systems

11. Reporting Structure: Description of how and to whom findings will be reported

12. Signature Block: Formal closure with signatures of authorized representatives