185 Engagement Letter

The 185 Engagement letter formalises the audit engagement by documenting and confirming the agreed scope, objectives, timing, and responsibilities. It ensures that both Internal Audit and management have a shared understanding of the engagement before fieldwork begins.

To formally document and obtain agreement on the audit engagement, ensuring clarity on scope, objectives, responsibilities, and timing before the audit commences.

Planning | 185 Engagement Letter can be found within 180 Planning on the Planning page.

The Engagement letter, similar to the Notification letter, is a structured document editor that combines pre-populated engagement details with user-defined inputs to create a formal final engagement communication to stakeholders. Some of the information is automatically pulled from 181 Planning memorandum, including the engagement title, objectives, scope, dates, risks and assigned audit team. This ensures consistency across the engagement while reducing duplication of effort.

The document contains 9 pre-defined placeholders that should be completed by the user before sending the Engagement letter to the stakeholder. The top of the left hand sidebar will identify the number of Placeholders remaining.

Different placeholders have different functionalities for example:

• Selecting date opens a calendar that allows you to select the date of the Engagement letter.
• Selecting Contact or Select Staff opens a window that lists all of the contacts within the organisation that have been loaded onto you Caseware cloud instance.
• The rest of the placeholders are text.

The following key sections can be found in the Engagement letter.

Header Information

Displays:

• Organisation name
• Date
• Recipient (e.g., auditee or responsible person)
• Subject line

This information frames the letter as a formal communication.

Purpose of the engagement

Describes the reason for the audit, confirms the agreement between Internal Audit and the auditee and typically includes the audit period and context.

Scope of the Engagement

Outlines what the audit will cover and includes:

• Processes or areas under review
• Boundaries of the audit

This section is often aligned with the Planning Memorandum (181).

Key risks addressed

An outline of the key risks related to the activity that will be assessed during the review.

Exclusions

Specific exclusions as agreed to.

Deliverables

Generally required deliverables are included, however, any additional deliverables as agreed to can be added here.

Responsibilities

Includes clearly defined responsibilities for both parties:

Internal Audit responsibilities:

• Conduct the audit objectively and professionally
• Maintain confidentiality
• Communicate findings clearly

Auditee responsibilities:

• Provide access to information, systems, and personnel
• Respond to audit requests
• Address findings through action plans

Confidentiality

• Confirms that all information obtained during the audit will be treated as confidential.
• Reinforces adherence to professional standards.

Sign-off Section

• Includes:
• Internal Audit sign-off
• Auditee acknowledgement (where applicable)
• Serves as formal confirmation of the engagement.

Document Output Options

By selecting the print icon in the document map, the Engagement Letter can be:

• Printed (Print preview)
• Downloaded as PDF / PDF/A / DOCX

Note: There is no approval workflow within the system for this document.

How to Complete

Review auto-populated content

• Ensure objectives, scope, and timing align with planning.

Update and refine the letter

• Tailor wording where necessary.
• Ensure clarity and professionalism.

Confirm scope and processes

• Verify alignment with the Planning Memorandum.

Validate responsibilities

• Ensure both Internal Audit and auditee responsibilities are clear.

Generate the document

• Use print or download options.

Share with stakeholders

• Distribute the Engagement Letter externally as required.

Important Tips

• Ensure full alignment with 181 Planning Memorandum.
• Keep the tone formal and precise — this is an official document.
• Clearly define scope to avoid misunderstandings later.
• Remember: this document is not system-approved — approval is external.
• Always retain a final copy as part of audit documentation.

By completing the Engagement Letter, the auditor establishes a formal and documented understanding of the audit engagement with management. The letter clearly communicates the agreed scope, objectives, timing, and responsibilities, ensuring alignment between Internal Audit and the auditee before the audit proceeds. It also serves as an official record of the engagement, supporting transparency, professionalism, and consistency in audit communication.