State Internal Audit Requirements

The NC Internal Auditing Act requires state agencies to establish an internal auditing program that complies with current national standards. This applies to agencies with annual operating budgets of more than $10,000,000 or more than 100 full-time employees, or that receive and process more than $10,000,000 in cash in a fiscal year.

The Council allows state agencies with annual operating budgets of more than $10,000,000 but less than $70,000,000, or more than 100 full-time employees, to use the Central Internal Audit Office for internal audit services.  

State agencies subject to the Act must have an internal audit director whose responsibilities conform with the Institute of Internal Auditor’s International Professional Practice Framework. This includes:

  • Promoting an effective system of internal controls that safeguards public funds and assets and minimizes incidences of fraud, waste, and abuse. 
  • Determining if programs and business operations are administered in compliance with federal and state laws, regulations, and other requirements.
  • Reviewing the effectiveness and efficiency of agency and program operations and service delivery. 
  • Periodically auditing the agency's major systems and controls, including: accounting systems and controls; administrative systems and controls; and information technology systems and controls.

Link to State term contract for Internal Audit Supplemental Staffing