Presentation on theme: "1 NORTH CAROLINA COUNCIL OF INTERNAL AUDITING October 31, 2007."— Presentation transcript:
1 NORTH CAROLINA COUNCIL OF INTERNAL AUDITING October 31, 2007
2 Legislation The North Carolina Internal Audit Act House Bill 1401 (SL ) –State Agencies covered Annual operating budget exceeds $10 million, or More than 100 full-time equivalent employees, or Receives and processes more than $10 million in cash in a fiscal year –Internal Auditing requirements State agencies establish a program of internal auditing –Safeguard public funds and assets –Ensure compliance with laws, regulations, and other requirements –Ensure effectiveness and efficiency of program operations
3 Legislation The North Carolina Internal Audit Act House Bill 1401 (SL ) –Standards Comply with current standards –Appointment and Qualifications Minimum qualifications established Agency head appoint Director of Internal Auditing who shall report to agency head
4 Legislation North Carolina Internal Audit Act House Bill 1401 (SL ) Council of Internal Auditing Responsibilities –Promulgate guidelines for the uniformity and quality of State agency internal audit activities –Recommend number of agency internal auditors –Develop internal audit guides, technical manuals, and suggested best practices –Administer an independent peer review system –Provide central training sessions, professional development opportunities, and recognition programs –Administer program for sharing internal auditors –Maintain central database of all annual internal audit plans; topics for review; internal audit reports issued –Require agency reports and conduct hearings as necessary –Issue an annual report of service efforts and accomplishments of State agency Internal Auditors and propose legislation
5 Internal Audit Guidelines Guidelines for State agencies internal audit activity. –Provide statewide uniformity and quality assurance.
6 Staffing Analysis Recommend number of internal audit employees required by each State agency. –Initial Survey Surveyed State agencies on current internal audit function. –Detailed Staffing Analysis Conduct additional analysis of internal audit staffing levels. Recommend appropriate number of State agency internal audit employees.
7 Guides, Manuals, Best Practices Develop internal audit guides, technical manuals, and suggested best practices for Statewide Internal Audit program. –Ensure policies and procedures developed complement statewide internal controls efforts.
8 Peer Review System Administer independent peer review system –Specify frequency of reviews –Assist agencies with selection of peer reviewers from other State agencies –Maintain database of qualified peer reviewers –Develop method for monitoring peer review system
9 Central Training Provide central training sessions, professional development opportunities, and recognition programs for internal auditors. –Identify outside training opportunities –Develop Office of Internal Audit sponsored training sessions –Work with agency internal auditors to develop a recognition program
10 Staffing Administer program for sharing internal auditors –Office of Internal Audit
11 Staffing Establish team of interagency internal auditors Develop protocol for service request Schedule audit requests
12 Database Maintain central database –Annual internal audit plans –Topics for review proposed in audit plans –Issued internal audit reports –Individual findings and recommendations
13 Reports and Hearings Require reports in writing relative to any internal audit matter Conduct hearings as necessary