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Office of Internal Audit

OSBM serves as staff and support to the Council of Internal Auditing in its implementation of the NC Internal Audit Act (Article 79, Chapter 143 of the NC General Statutes). The 2007 session of the General Assembly created this act, the passage of which was recommended by a study directed by the Government Performance Audit Committee.

The act requires a state agency that (1) has an annual operating budget that exceeds ($10,000,000), (2) has more than 100 full-time equivalent employees, or (3) receives and processes more than $10,000,000 in cash in a fiscal year, shall establish a program of internal auditing, and that internal audits comply with current Standards for the Professional Practice of Internal Auditing issued by the Institute for Internal Auditors. The act establishes qualifications of Internal Auditors, directs that agencies appoint a Director of Internal Auditing, and establishes the Council of Internal Auditing.

To support the Council, OSBM has established an Office of Internal Audit to assist in the carrying out its responsibilities. The Office of Internal Audit structure is shown below.

OIA Organizational Structure

Professional Development Opportunities
If you have ideas or particular interests, please forward them to the Office of Internal Audit.

Interagency Internal Audit Program
The Interagency Internal Audit Program provides technical expertise to internal audit functions and assists state agencies with internal audit activities whose budgets are between $10 and $70 million. The Program helps agencies develop and implement audit plans to add value and improve a state agencyís operations.

Quality Assurance Review Program
The Office of Internal Audit has developed a Peer Review Program to help state agencies and universities comply with The Institute of Internal Auditors (IIA) Standards for the Professional Practice of Internal Auditing (Standards) and the Internal Auditing Act (G.S. 143-745). In order to comply with the Standards, internal auditing offices are required to have an external assessment at least once every five years. The Act requires the Office of Internal Audit to establish an independent peer review system for state agency and university internal audit activities. The purpose of an external review is to evaluate and express an opinion on an Internal Audit functionís compliance with the Standards. The Peer Review Program will enable state agencies and universities to obtain their external assessment in a method that is cost-effective and educational. Information on the peer review process, procedures, and templates is available on the QAR Assessment Map page. Contact the Office of Internal Audit with questions on the Peer Review Program.

IIA Government Group Membership Rate The OSBM Office of Internal Audit has worked with the IIA to establish a group rate discount for North Carolina public service internal auditors. This applies to internal auditors in North Carolina state, local, and educational organizations. We are currently in the 101-149 tier price range at $70 per membership. As more auditors join the group, the membership rate will drop. Current members will receive the reduced member rate during the renewal period in October of each year. To learn more about the group discount or to join IIA through the OSBM group rate, email

Other Resources

To contact the Council or staff, email