N.Y. Public Authorities Law § 2932: Internal audit responsibilities

§ 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.