Amends GS 93B-4 (pertaining to audits of occupational licensing boards) to specify that books, records, and operations of each occupational licensing board are subject to audit by the State Auditor (currently, subject to oversight).  Makes the requirement that occupational licensing boards with a budget of at lest $50,00 provide a copy of their annual financial audits to the State Auditor optional instead of mandatory.

Amends the definitions pertaining to the State Auditor as follows. Amends the elements of the definition of audit (currently, financial and compliance, economy and efficiency, and program results) to add information systems (as defined) as another element to audit so that there are four elements total. Makes clarifying and conforming changes to the remainder of the definition. Makes technical change to the definition of state agency. 

Amends the duties and responsibilities of the State Auditor (GS 147-64.6) to add the following for the State Auditor to examine in an audit of the practices of a state agency: whether the agency is developing, maintaining, and operating information systems, including hardware, software, network communications, and data in compliance with applicable laws, rules, and best practices and maintaining appropriate levels of data confidentiality, integrity, and availability within those systems, so that there are eight areas of examination total. Makes changes to the filing requirements relating to audit reports.  Specifies that work papers and related supportive material maintained by the Auditor’s office in its audit files are not public records under State public records law and must be kept confidential. Deletes provision that also designates any interpretations, advisory opinions, or other information or materials furnished to or by the State Ethics Commission as confidential. Removes language giving discretion to State Auditor for release of audit records to State and federal government representatives for access and inspection in connection with a matter officially before them, including criminal investigations. Makes technical, clarifying, and conforming changes.

Enacts new GS 147-64.6E, pertaining to corrective action that may be taken by the State Auditor, as follows. Allows the State Auditor to include recommendations to the State agency to correct deficiencies if the State Auditor finds that the agency is not adhering to one of the eight practices referenced above.  Requires the agency to submit a progress report to the State Auditor and the specified NCGA committee one year after receiving the recommendations so that they may determine if the agency has made significant progress in correcting the identified deficiencies in a timely manner. If the specified NCGA committee finds that the agency has failed to makes significant progress, the committee may direct the agency to appear before a legislative committee to provide information regarding the deficiencies and corrective action taken by the agency.

Effective October 1, 2023.

Makes technical changes and language gender neutral in GS 147-64.7A (pertaining to the obstruction of an audit). Clarifies that for there to be a violation, the person must hinder or obstruct the State Auditor or designated representative in the performance of their statutory duties (currently, just the performance of their duties). Effective December 1, 2023, and applies to offenses committed on or after that date.