Makes the following revisions to Article 5A, GS Chapter 147, regarding the Office of State Auditor.

Modifies the legislative policy and intent concerning auditing State agencies and entities supported by public funds set forth in GS 147-64.2. Adds a statutory cross-reference to define State agencies. Expands the legislative intent stated to subject all State agencies and entities supported by public funds to audits and investigations under the policy guidance of the State Auditor (was, limited to audits only).

Makes organizational changes to the defined terms set forth in GS 147-64.4. Makes changes throughout to refer to "State agency" rather than "government" or "entity." Clarifies that the definition for accounting system also applies to system of accounting. Adds the term investigation, defining the term to mean an independent review or examination of an allegation of improper governmental activity regarding a State agency organization, program, activity, or function, with the purpose to help ensure full accountability and assist State agency officials and employees in carrying out their responsibilities (similar to the existing purpose stated for the term audit). Adds political subdivision to entities included in the defined term State agency. Makes a technical change to refer to applicable laws rather than laws and regulations. Makes technical and clarifying changes. 

Adds to the stated NCGA policy set forth in GS 147-64.6 to include providing for the investigation of State agencies by the State Auditor. To that end, expands the areas of examination the State Auditor is charged to make findings on to include determining whether or not a State agency is engaging in an improper governmental activity, as set forth in state law, including misappropriation, mismanagement, waste of State resources, fraud, or a violation of State or federal law. Makes changes throughout to refer to applicable federal laws rather than laws and regulations. Makes changes to refer to "State agency" throughout, rather than State agency, department, institution or organization. Regarding the State Auditor's auditing responsibility, specifies the Auditor's duty to audit all or any part of the activities of State agencies comply with the Auditor's overall responsibility contained in the Article (was the act). Expands required reporting to the State Purchasing Officer to include investigations that result in finding that a private person or entity has received public funds as a result of fraud, misrepresentation, or other deceptive acts or practices while doing business with a State agency (previously limited to audits that produce such findings). Makes technical and clarifying changes.