Tenn. Code Ann. § 9-3-211: Annual audit in each political subdivision and special taxing district

(a) An annual audit of financial records and transactions covering each fiscal year shall be made of each department, office, agency, division or board which is charged with the care and control of public funds, in each political subdivision and special taxing district and which is not now required by law to be audited by the office of the comptroller of the treasury.

(b) Such audit for each fiscal year shall be made and completed no later than the close of the succeeding year.

(c) All audits performed by internal audit staffs of any such department, office, agency, division or board shall be conducted in accordance with the standards established by the comptroller of the treasury, pursuant to § 4-3-304(9) .