Internal Audit Provisions

North Carolina Office of State Budget and Management

Office of Internal Audit

Presenters: Barbara Baldwin CPA, CIA, CICA, Internal Audit ManagerShannon Byers, Director of Quality Assurance & Development

Overview

• Auditing and Evaluating in North Carolina

• The NC Internal Audit Act

• The Council of Internal Auditing

• The Office of Internal Audit (OIA)

• Agency Opportunities and Requirements

• Questions?

Auditing and Evaluating in NC

• External Auditing

• Internal Auditing

• Program Evaluation

• Management Studies

External Auditing

Who Conducts

PurposeOrigin of

Service Requests

Office of the State Auditor

Compliance in nature; provides an opinion on whether financial statements are fairly stated and reviews operation efficiency and effectiveness

• Mandated

• Legislative requests

• Citizen requests

• Risk assessment based

• Agency requests

• State Auditor discretion

Internal Auditing

Who Conducts

PurposeOrigin of

Service Requests

State agencies and universities

Management tool; identifies improvements to operations

• Risk assessment based

• Management requests

• State Auditor or whistle-blower leads

Program Evaluation

Who Conducts

PurposeOrigin of

Service Requests

Legislative Services, Program Evaluation Division

Determine if services are being delivered in an efficient and effective manner and in accordance with the law

• Mandated

• Legislative requests

• Program Evaluation discretion

Management Studies

Who Conducts

PurposeOrigin of

Service Requests

Office of Budget and Management (OSBM)

Consultant in nature; advise if programs are running efficient and effective

• Mandated

• Legislative requests

• Agency requests

• Governor or State Budget Officer directive

• OSBM initiative

Auditing in North Carolina

The North Carolina Internal Audit Act

House Bill 1401 (SL 2007-424)• Directed agencies to appoint an

Internal Audit Director• Directed agencies to comply with

professional audit standards• Established the Council of Internal

Auditing• Directed OSBM to support the

Council

The Council of Internal Auditing

• Develop and publish internal audit guides• Administer an independent peer review system• Provide central professional development • Administer a program for sharing internal auditors• Maintain a central database of all annual internal

audit plans and reports• Issue an annual report

to the General Assembly

Office of Internal Auditing (OIA)Charlie Perusse

State Budget Officer

Office of Internal Audit

Shannon ByersDir. of Quality Assurance

Barbara BaldwinInternal Audit Manager

Michele EvansInternal Auditor

Courtney MichelleInternal Auditor

Regina HillInfo. Systems Auditor

Betty HaleyResearch Assistant

Agency Requirements1. Appoint an Internal Audit Director

2. Establish an internal audit program

3. Comply with auditing standards

4. Submit audit charter and organizational chart to OIA as updated

5. Follow NC Internal Audit Manual

6. Submit Internal Audit Plan on a yearly basis

7. Submit internal audit reports regularly

8. Submit reports or information to the OIA as requested by the Council

Agency Opportunities

Training Opportunities

Peer Review Program

Technical Assistance

Recognition Program

Council Information and Assistance

QUESTIONS?Barbara Baldwin, CPA,CIA, CICAinternalauditinfo@lists.ncmail.net919-807-4721• OIA Internal Auditing Services• Technical Expertise

Shannon Byersinternalauditinfo@lists.ncmail.net919-807-4755• OIA Peer Review Program• OIA Training Opportunities• Council of Internal Audit Questions