(a) The Office of the Inspector General in the Department shall conduct or contract for a financial and compliance audit of each local department at an interval of 4 years unless the Office of the Inspector General determines, on a case–by–case basis, that an audit occur at an interval of 3 years.
(b) In determining the audit interval for a local department, the Office of the Inspector General shall take into consideration:
(1) the materiality and risk profile of the local department’s programs and fiscal activities;
(2) the nature and extent of prior audit findings of the local department; and
(3) any other factor related to risk.
(c) The audit shall comply with the auditing standards issued by the Institute of Internal Auditors.
(d) A written report of the audit findings shall be prepared and distributed to:
(1) the local board; and
(2) the local governing authority.