As used in this part:

1. (1) "Audit committee" means a standing committee:

   1. (a) appointed by the local school board or charter school governing board with the following number of members as applicable to the local school board or charter school governing board:

      1. (i) for a board of a local education agency that consists of seven or more members, three members of that board; or
      2. (ii) for a board of a local education agency that consists of six or fewer members, two members of that board; and
   2. (b) composed of people who are not administrators or employees of the local education agency.
2. (2) "Audit director" means the person who directs the internal audit program.
3. (3) "Audit plan" means a prioritized list of audits to be performed by an internal audit program within a specified period of time.
4. (4) "Internal audit" means an independent appraisal activity established within a local education agency as a control system to examine and evaluate the adequacy and effectiveness of other internal control systems within the local education agency.

5. (5) "Internal audit program" means an audit function that:

   1. (a) is conducted by a local school board or charter school governing board independent of the local education agency offices or other operations;
   2. (b) objectively evaluates the effectiveness of the local education agency governance, risk management, internal controls, and the efficiency of operations; and

   3. (c) is conducted in accordance with the current:

      1. (i) International Standards for the Professional Practice of Internal Auditing; or
      2. (ii) The Government Auditing Standards, issued by the Comptroller General of the United States.
6. (6) "Local education agency" means a school district or charter school.

Renumbered and Amended by Chapter 3, 2018 General Session