ยง 2932. Internal audit responsibilities. 1. The governing board of
each covered authority or its designee shall determine, and periodically
review the determination of, whether an internal audit function within
the covered authority is required. Establishment of such function shall
be based upon an evaluation of exposure to risk, costs and benefits of
implementation, and any other factors that are determined to be
relevant. In the event it is determined that an internal audit function
is required, the governing board of each covered authority shall
establish an internal audit function which operates in accordance with
generally accepted professional standards for internal auditing. Any
such internal audit function shall be directed by an internal audit
director who shall report directly to the governing board of the
authority. Internal audit director appointments shall be based on
appropriate internal auditing credentials of the proposed appointee,
consistent with generally accepted standards for internal auditing,
including internal auditing education and experience. The internal audit
function shall evaluate the authority's internal controls and
operations, identify internal control weaknesses that have not been
corrected and make recommendations to correct these weaknesses.
2. In the event the governing board does not establish an internal
audit function pursuant to subdivision one of this section it shall
nevertheless establish and maintain the program of internal control
review required by section twenty-nine hundred thirty-one of this title.