Link Between Internal Control and Internal Audit

1
Link Between Internal Control and Internal Audit

• By statute
• G.S. 143-739(a)(1) a State agency shall
  establish a program of internal auditing that
  implements an effective system of internal
  control.
• G.S. 143-739(a)(4) a State agency shall
  establish a program of internal auditing that
  periodically audits the agencys major systems
  and controls.
• By practice
• Monitoring (COSO internal control framework).
• Annual State agency evaluations (G.S. 143D-7).

2
Link Between Internal Control and Internal Audit

• Challenges to Council
• Ensuring that internal audit plans allocate
  sufficient resources for monitoring and annual
  assessments.
• Ensuring that internal auditors are trained and
  practice the internal control principles and
  methodologies prescribed by the State Controller.