INTERNAL AUDIT ORGANIZATIONS - 20040

(Revised and Renumbered 12/2017)

Many state agencies have internal audit organizations.  GC 1237 requires state agencies with aggregate annual spending of fifty million dollars ($50,000,000) or more annually consider establishing an internal audit unit. OSAE maintains a list of internal audit organizations. These organizations provide objective assurance and consulting services designed to add value and improve the agency’s operations. The internal audit organization helps an agency accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management and internal control processes.

Internal auditors of state agencies shall utilize the “International Standards for the Professional Practices of Internal Auditing (Standards)” (GC 13071) or the Government Auditing Standards as issued by the Comptroller General of the United States (GC 13886.5). Standards require that internal audit organizations develop and maintain a quality assurance and improvement program that covers all aspects of the internal audit organization.