The bill amends various sections of the Government Code to enhance the internal auditing program conducted by state agencies in Texas. It establishes clearer guidelines for internal auditing, emphasizing the importance of providing independent, risk-based assurance and advisory services to agency administrators and governing boards. Notably, the definition of internal auditing is revised to focus on strengthening an organization's ability to create and sustain value, while the term "advisory services" is introduced to encompass consulting activities aimed at improving operations without assuming management responsibilities.

Additionally, the bill modifies the requirements for the internal audit program, including the development of an annual audit plan based on risk assessment techniques and the inclusion of audits for financial, operational, and information technology systems. The internal auditor's responsibilities are expanded to include the communication of both advisory and assurance service results, and the internal audit standards are updated to align with the Global Internal Audit Standards. The bill also repeals a previous definition related to internal auditing, streamlining the legal framework governing these activities.

Statutes affected:
Introduced: ()
House Committee Report: Government Code 2102.002, Government Code 2102.003, Government Code 2102.005, Government Code 2102.007, Government Code 2102.008, Government Code 2102.0091, Government Code 2102.011 (Government Code 2102)