NC H417

Expands the definition of "agency head" to include the President of the Community College System, State Controller, and other independent appointed officers; designates the State Board of Education as agency head for the Department of Public Instruction rather than the Superintendent.

Modifies internal audit program requirements by changing language from "implements" to "promotes" effective internal controls and from "ensures" to "determines if" programs comply with laws and regulations.

Updates qualification requirements for internal auditors by removing specific certification mandates and allowing the Office of State Personnel, in consultation with the Council of Internal Auditing, to establish minimum qualifications.

Allows the Director of Internal Auditing to report to the agency head, chief deputy/chief administrative assistant, or governing board (instead of only the agency head), provided organizational placement avoids independence impairments.

Creates new provisions establishing confidentiality of internal audit work papers and making Class 2 misdemeanor conduct for willfully obstructing or interfering with internal auditors, effective December 1, 2013.