The internal audit activity is planning an assurance engagement for a foreign subsidiary.

Preliminary Communication:Preliminary communication to management of the area under review is essential in setting clear expectations and ensuring transparency regarding the upcoming audit.

Key Elements to Include:

Scope of the Engagement:Define what will be covered in the audit to ensure that management understands the focus areas and objectives.

Estimated Time Frame:Provide a timeline for the audit activities, including the start and end dates, to help management plan and allocate resources accordingly.

Names of the Auditors:Identify the auditors involved to facilitate communication and coordination with the audit team.

IIA Guidance:According to the IIA standards, communicating these elements helps in building a cooperative relationship and ensures that there are no misunderstandings regarding the audit process.

References:

IIA Standard 2201 – Planning Considerations .